The National Association of Real Estate Editors (NAREE) Conference allows real estate industry professionals and thought leaders to take the stage as the country’s leading real estate editors, reporters and consultants converge to share insights on trends and outlooks on an annual basis.
The real estate industry and its economic implications on a local, regional and national level capture the attention of seemingly everyone. In 2017, ReComm team members attended the event in one of the nation’s fastest growing markets, Denver. NAREE offered an unparalleled opportunity to access, collaborate and learn from prominent minds over three days. We walked away with some gems that we could not wait to share.
1. The Demand for new homes exceeds the building pace.
If there is one thing you should know about today’s real estate market, it is that inventory is low. Due to factors such as population growth homes are not staying on the market long and builders cannot keep up with demand. That said, consumer confidence in builders and construction remains high.
2. The apartment supply is growing at a rapid pace
The next time you are in a metropolitan take a look around and see how many cranes dot the sky. Our country is developing apartments to fill a niche amongst millennials, but many millennials will not want to be trapped in apartments forever. “At some point, they’ll need to get on the housing ladder,” said Marcel Arsenault, Chairman, CEO and Founder of Real Capital Solutions. This means continued demands in the single family home market for years to come and the possibility of dropping rent prices.
3. Technology’s impact: increased accessibility and specialization
Real estate brokers and agents are notorious for being the fullest depictions of a “people person,” but historically they have done much more than just the human interaction of the sales transaction. As technology becomes more pervasive, don’t be surprised if you see online resources become full-service and brokers and agents become more specialized as they leave things like marketing and contracts to programs and contractors.
4. The diversification of the vacation home
The ability to be more to more people is a notion that seeps into many parts of our everyday lifestyle, and that holds true for our vacation homes as well. The idea of owning or renting a vacation home that is only good for one activity or one season has become outdated. As we look forward take note of more homes, communities and destinations that have year-round offerings and a variety of accessible activities to entertain guests. These areas are the future of destination vacation homes.
If you are looking for an example of this check out Frost Creek.
5. There is a shift coming
We know that is a bit vague, and in truth, we cannot guarantee future predictions, but we trust the insights of NAREE’s speakers. Some economic trends that are showing right now ensure a shift. For example, Denver has the lowest unemployment of major cities in the U.S. There is currently more demand for workers and as we near total employment there will be major economic and real estate impacts. Another trend we are seeing is higher inflation, likely leading to higher interest rates.
In conclusion, the real estate market is one to watch. Regardless of your intentions of buying or selling property, real estate has far-reaching impacts, especially on our economy.
Bonus Quote: “Twitter is only used by politicians, celebrities and people attending conferences.”
We like to think we are an exception. In our field, we deal with some brilliant minds, and every day is like being at a conference. Follow us @ReCommGlobal.