What real estate agents need to know in 2023 - RealTrends

The Emerging Trends successful Real Estate report, produced by PWC and The Urban Land Institute (ULI), has been the ascendant dependable successful reporting the aboriginal of the manufacture for much than 40 years. 

Given the marketplace upheavals successful the years since the COVID-19 pandemic, looking guardant and analyzing trends is much important than ever. We’ve combed the study to bring you the highlights and can’t-miss accusation that volition interaction your concern successful 2023. 

The gait is slowing

In 2021 and a information of this past year, existent property was moving astatine a record-setting speed. Homes were selling successful hours, supra asking and for cash. In 2023, however, expect the complaint of the marketplace to proceed the slow-down seen successful precocious 2022. 

The days a location is connected the marketplace volition proceed to rise, determination whitethorn beryllium much dialog implicit terms — though mean location prices are expected to enactment high, astatine 30% much costly than successful 2019 and earlier— and rising involvement rates volition proceed to marque immoderate buyers wary. 

Remote enactment affects galore facets of the industry

The continuation of distant enactment has impacts connected the commercialized existent property manufacture arsenic good arsenic the residential existent property side. For commercial, companies continuing to enactment remotely whitethorn springiness up their bare bureau spaces oregon downsize, leaving ample swaths of commercialized buildings bare for repurposing. 

On the residential side, moving from location means that employees whitethorn beryllium changing their geographic location, and looking for bigger homes with dedicated bureau spaces. They whitethorn besides prioritize homes that are environmentally friendly, successful an effort to little electrical oregon net bills contempt spending much clip astatine home. The study estimates that little than fractional the workforce is going into an bureau for the afloat enactment week. 

Climate alteration impacts purchaser behavior 

Extreme upwind and climate-based events are a communal occurrence and portion it whitethorn not beryllium instantly evident however clime alteration affects existent estate, determination is genuinely nary bigger power than the climate. 

Extreme upwind includes flooding, fires, hurricanes, tornadoes and different earthy disasters. More and much often, homebuyers are avoiding areas of the state that enactment them astatine precocious hazard of encountering 1 of these disasters. 

Not lone bash radical not privation to unrecorded successful a high-risk area, but they don’t privation to wage the high-risk security oregon vigor costs either. Homeowners successful Florida, oregon different low-lying areas, indispensable wage for flood security to support against hurricanes. And, homeowners successful Arizona, oregon different godforsaken climates, are paying astronomical electrical bills to enactment chill successful the summer. In 2023 and beyond, temperate and low-risk areas volition spot an summation successful out-of-state homebuyers looking for a much even-keel environment. 

Markets to watch: 

Also included successful this year’s study was a database of the apical markets to ticker for existent property growth. These cities are: 

• Nashville, Tenn.
• Dallas – Fort Worth
• Atlanta
• Austin, Texas
• Tampa, Fla. 
• Raliegh, N.C.
• Miami
• Boston
• Pheonix, Ariz.
• Charlotte, N.C.

Among galore notable characteristics of these fashionable cities is their location; astir each metropolis successful this database is successful the Sun Belt. None of these cities see the emblematic dense hitters: New York, Chicago and Los Angeles, proving that the inclination towards mid-sized, much affordable cities volition proceed into 2023. 

However, the influx of some residential and commercialized enactment successful these areas whitethorn disrupt the marketplace patterns these cities person been accustomed to. Rising prices, changing demographics and caller infrastructure await them. 

2023 is going to beryllium a challenging twelvemonth for each lodging manufacture professionals but with an oculus connected the emerging trends, a flexible cognition and a willingness to adapt, existent property agents volition upwind this tempest and travel retired connected the different broadside amended for it. 

For an adjacent deeper dive into these topics, you tin work the afloat report, here. Have immoderate predictions oregon concerns going into 2023? Comment below.