Real Estate Today
The increasing number of business deals in the real estate market in the United States from 2005 to 2017 reflects growing demand. The transaction volumes in the U.S. real estate market amounted to 467 billion U.S. dollars in 2017 alone. From 2010, after the 2008 global financial crisis, the transaction volumes have been steadily increasing.
Changes in the structure of e-commerce and aging populations will continue to influence growth patterns globally, and a favorable environment for real estate investment worldwide is expected this year and in the coming years.
Contactually has provided some observations based on data as trends in real estate. One of these is that millennials will make up 33% of homebuyers in 2017, a forecast that could help real estate people in business and agents in the development of their marketing strategies. By generation, the U.S. labor force from the past decade to 2015 consisted mainly of millennials or adults ranging from age 18 to 34 in 2015.
Globally, the market outlook for real estate commercial today is that there is economic growth that leads to better and more profitable business in real estate. Morgan Stanley notes that revenues on the property market returns are expected slowdown as income growth becomes the primary driver of returns.
A second forecast is that 17% of people under 35-year-olds were able to save for down payments in 2016. This group is a potential market for house and lot buyers in 2017. This new market is a growing trend worldwide where values are changing, and the younger generation has the cash to finally leave their parents’ homes and set up their own.
About eighty percent of residential growth will happen in suburban markets starting in 2017. This movement is good news for developers where community amenities and housing options will become significant areas of growth outside of city centers. The establishment of new communities in the suburbs will spawn the construction of malls, restaurants and coffee shops that would positively affect not only the construction industry but real estate business as well.
The property developers are the ones who look for large areas where a mall or a housing area can be developed and built. Brokers who can finalize the sale of land to developers earn attractive commissions. The noted growth of the US economy and in many countries including China will accelerate the pace of development in the real estate property sector.
If you are a licensed broker, this is the group that you should be in constant contact with most of the time. Significant changes in the property market are mainly a result of the involvement of property buyers and sellers, with new buyers needing new locations, and sellers who are looking for right buyers.
Morgan Stanley’s Divergent Market Cycle model involves six areas of concern which are: peaking, wakening, falling, bottoming, accelerating and decelerating. We find for instance a peaking of real estate trends and opportunities in some parts of the globe such as in Tokyo, Melbourne, Paris, Osaka, Budapest, and Sydney, while a falling in Singapore, and London. All sectors of society intersect at the real estate market today.