What Are The Top Trends In Real Estate In 2023? | Boca Raton Real Estate Trends
2023 thus far has been reflective of the efforts to revert our economy to a more level basis. With the surge in prices and the massive reduction in inventory, the nation's builders are working diligently to provide home buyers with what they're looking for while developing new land into available housing. As a result, the ongoing major construction projects nationwide will better reflect the latest trends in real estate, rather than sporadic construction in smaller pockets. We've studied these trends, especially those most seen in Boca Raton Real Estate, and reviewed some of the most prominent to grace our area have been.
Low (But Growing) Inventory
In recent years, the inventory has bottomed out in some areas, especially South Florida. Low supply and high demand have driven up costs, but area developers are hard at work providing additional units in the form of new single-family developments and condominiums alike. While the housing shortage is more acute in South Florida, the escalation of mortgage rates along with the expected delivery of several marquee new developments will ensure the next 3-5 years expect a gradual easing of the skyrocketed prices we saw during the apex of COVID.
More Online Activity
The world grows ever more digitized at an exponential pace. Just over a decade ago, the iPhone was a brand-new product, and Facebook was a new concept. Today, a sizable portion of the world, not just our buyers and sellers, spend most of their online time via smartphone. This trend is only expected to increase as the Millennials, and soon after, Gen Z, begin buying homes in greater quantity. The Millennials are the final generation to remember part of life without a cell phone in their hands, while those born after are practically cyborgs. Prepare yourself for the digital world as a Realtor and ensure you're up to par for your clients.
Buyers Reacting To Higher Rates
Buyers have reacted tersely to higher rates, with even those of substantial means giving pause before making a decision. The result has seen several of the best producing area Realtors sometimes reduced to glorified tour guides, leading wealthy buyers across the county before any deal is even attempted. It's important as Realtors to be honest and real about current market conditions, but provide alternatives and insight as to why it's never truly a bad time to buy, and how timing the market can be a fatal mistake for your bottom line. After all, if market conditions were all it took for a Realtor to lose their edge, the agents at Champagne & Parisi would be helpless and disempowered, rather than ready with the answers and solutions to assuage these concerns.
The Role Of Inflation On Buyer Budgets
It's not just the high rates that are impacting buyer decisions; it's the everyday cost of doing business and living life. That same loaf of bread that costs $3.99 two years ago is now $6. The price of gas is significantly higher, and as a result, so is the cost for just about everything in life. As a result, Americans are spending thousands more annually without changing their buying habits, while in many cases making concessions to account for the cost of goods. Ultimately, these little nickle and dime moments reduce liquid cash significantly, taking what might have been sufficient for a solid down payment down a rung, in some cases pricing out a buyer altogether.
Continued Outward Migration From Urban Areas
One notable driver of movement in the United States has been crime. Since the unfortunate year of 2020, several areas of the country have become so polarized that significant cuts were made to police budgets, bail was reduced or removed altogether, and some cities regressed to the dark days of the 1970s. Places such as New York City, which once was one of the safest metropolises in the world, is now devolving into a form seen before the iron-fisted cleanup of the Giuliani administration. Regardless over where one stands on the issues of criminal justice reform, the facts remain. These big cities are dangerous, and getting worse. Though a reckoning in some places seems to loom on the horizon, all it takes is one bad day at the wrong place and the wrong time to lose everything. While we don't wish to inflect negativity or anything remotely political in our blog, it is important to state the facts. For the first time in seemingly decades, urban crime seems to be a major motivating factors in relocations to places like Boca Raton.
Learn more about Boca Raton Real Estate - see below!