Expansion seen for real estate industry in 2017 says report
The real estate industry is generally optimistic about the year ahead but there are several key trends which will help that sentiment become reality.
A survey by Inman reveals that 27.4 per cent of respondents are “extremely optimistic” about the real estate industry in 2017 with slightly more than half expecting the new president’s policies to boost the housing market.
While being nimble was shown to be important, most (71.2 per cent) of respondents are planning to expand their business in 2017 and 55 per cent of agents “extremely happy” with the state of their business heading into the new year.
However, to capitalize on the potential for the year ahead, the Inman research shows that agents must work smarter and be ready to meet market demands.
Among the largest challenges ahead, respondents said rising interest rates, low inventory and helping clients find affordable homes.
US housing market hits record high of $29.6 trillion
The US housing market was 5.7 per cent higher in 2016 than a year earlier with a total worth of $29.6 trillion. The increase of $1.6 trillion last year, reported by Zillow, means that the housing market has now recovered all the value lost in the housing crisis.
Los Angeles holds the highest share of housing wealth at 8.6 per cent with New York just behind at 8 per cent. San Francisco completes the top 3 with 4.2 per cent of the total housing value.
Despite the gains, Zillow says that 60 per cent of markets in the US remain below their maximum values reached during the bubble years.
Could this be the future of commercial real estate?
It may sound like something from a sci-fi movie but one sector of commercial real estate could be about to take to the skies.
A document discovered by CB Insights appears to show that Amazon has filed a patent for what would essentially be a flying warehouse. The airship would act as a fulfilment centre for products which would then be delivered to customers by drones.
The centres would be cited above major metros, reducing the need for ground-based warehouses and further impact bricks and mortar retailers.
However, while a patent may be granted there would be significant regulatory and safety barriers to overcome before airborne real estate would become a reality.