5 Real Estate Trends to Watch Out for in [2024]

It’s always important to keep a close eye on real estate trends, as these can affect a brokerage’s prospects. If you’re hiring new agents, for example, industry trends can dictate whether you should hire more residential or commercial property experts.

That said, here are some tips for real estate recruiters for finding the best talent at all experience levels.

What’s important to note is that the COVID-19 pandemic has had a significant impact on the real estate market. In its early days, for example, the restrictions imposed upon commercial establishments have led to a decline in rent prices in many areas.

Meanwhile, work-from-home policies have increased housing demand. While the world has gotten better at dealing with the virus, the effects of COVID-19 on the property market are particularly far-reaching.

5 Real Estate Industry Trends in [2024]

With all that being said, here are some key real estate industry trends to watch out for in [2024]:

1. Potentially High Mortgage Rates

During the past couple of years, property prices saw an increase of more than 40%. However, mortgage interest rates didn’t pick up as much or as fast.

Nevertheless, the numbers are still on an upward trend, with the 30-year fixed mortgage rate crossing the 6% threshold. Some experts say that this value may fall to about 4.5% in 2023, although it’s looking more and more like the upward trend may continue.

Some predictions position the peak of the mortgage interest rate hike at 7.25% for 15-year loans and around 8% for 30-year loans. If this happens, homebuyers will have a more difficult time finding properties that can fit their budgets. Those who will be particularly affected are first-timers, who may not have as many financing options.

In this situation, the most important thing is for real estate brokerage and agents, to be honest about how a high mortgage rate can affect their prospects. Be clear that, while it can be more difficult to find a home in such a situation, it’s also not impossible.

In fact, if your clients have a good credit score, they may receive better mortgage rates despite the market’s prevailing numbers. That said, be prepared to negotiate so both your buyers and sellers can get a good deal.

2. Slower, Lower Home Sales

In direct relation to the previous forecast, home sales are also expected to slow down in 2023. Depending on what the inflation rates will be in the coming periods, home-buying activity can be expected to drop by more than 10%.

As a result, home listings will likely stay in the market for 30 days or even longer. If this will indeed be the case, real estate brokerages may have to brace for frustrated or impatient sellers pulling their properties off the market in the meantime—and the possibility of them looking for new agents to work with.

Make an effort to reach out to your clients to discuss new strategies, such as renting out the property instead of selling it.

3. More Vacation Rentals

Speaking of renting out a property, this may indeed be a viable resource for homeowners wanting to sell. With more people scheduling their “revenge travel” in [2024] to make up for the months of having no choice to stay at home, there’s a predicted demand increase in short-term or vacation rentals.

This is particularly true for properties near natural attractions like national parks, as well as those with amenities like swimming pools, patios, and fenced-in backyards.

4. Remote Work Will Continue to Change the Landscape

One of the biggest policies implemented to curb the spread of COVID-19 is remote working. This has had quite an effect on both commercial and residential real estate.

For the former, a lot of companies have had to downsize or shift to a hybrid work arrangement; this resulted in empty office spaces that have since been repurposed or completely abandoned.

For the latter, meanwhile, the demand for larger homes has increased. For those living with children, the extra space is particularly important because of distance learning setups. Some home buyers also used the opportunity to relocate, or else look for properties that help them save on utility costs.

These trends are expected to continue well into [2024], especially with remote work having been proven beneficial for productivity, efficiency, and costs. That said, with policies being revised to respond to the current global situation, it’s best to keep your ear on the ground regarding any changes.

5. Reversal of Geographical Shifts

During the height of COVID, those looking for homes or making a transition to a remote work set-up opted to move away from city centers. Instead, they chose more affordable, smaller towns and other areas considered less prone to the spread of the disease
However, more workers may be coming back to work in offices again in [2024].

As such, there may be another geographical shift in the making. To prepare, it may be a good idea to review your brokerage’s listings in major metro areas and develop campaigns to position them as the optimal choice for buyers.

You may also take a look at properties that can be marketed for long-term rentals, which may be the ideal choice for hybrid workers who only need to report to the office for only a few days.

Aside from real estate trends in [2024], you may also want to keep an eye on allied industry trends. These include construction, financial services, and even hospitality. This way, you can make more strategic business decisions for the continued success of your brokerage.