Real estate investors should always stay abreast of the latest trends to know if they need to keep, improve, or let go of their investments. By knowing the trends, investors can make more informed decisions in terms of pricing their investments such as apartment rentals, commercial space leases, and properties they’re looking to sell.
Real estate investors can create better strategies to protect and improve their investments by regularly checking the latest updates on the market. If you’re an investor, you can find relevant information about increasing the value of your property investment on websites such as thepropertydaily.co.uk.
In this article, you’ll discover some of the real estate trends in 2021 you should be aware of as an investor.
1. Digital Transformation
The real estate market is undergoing a fast digital transformation. Real estate investors should therefore use digital technologies to promote their offerings. Many real estate companies are establishing and strengthening their online presence. That’s why investors need to have some basic knowledge of digital marketing strategies as well.
You can take advantage of the industry’s digital transformation by embracing the following:
- Search Engine Optimization (SEO): This refers to a digital marketing strategy that helps websites rank high on search engines. If you want to utilize SEO, you can hire experts to have your website on the first page of search engine results pages (SERPs).
- Virtual Tours: Real estate investors can implement virtual tours to encourage prospective tenants and buyers to strike a deal with them. Virtual tours involve video, virtual reality, and three-dimensional images of a property, giving people an immersive simulated experience.
- Social Media Marketing: Now more than ever, the real estate industry is also actively seen on social media. Sponsored ads promoting affordable housing and mortgage options are crowding social media networks in an effort to entice more buyers.
2. Lower Mortgage Interest Rates
In the housing market, mortgage interest rates impact affordability, demand, and home prices. Mortgage interest rates fluctuate daily because of different factors, including the bond market, inflation, and investor interest.
Coronavirus 2019 or the COVID-19 pandemic caused a crisis in the housing market in 2020. However, mass vaccination has given hope of normalization and a return to pre-pandemic life, leading to a positive trajectory. The stock market has escalated, and the housing market has followed the same trend by having low mortgage rates.
In January this year, mortgage rates declined to 2.74% from 3.62% in 2020 and 4.76% in 2019 according to the Federal Home Loan Mortgage Corporation or Freddie Mac. In the UK, the property market is on the good side as a result of lower mortgage rates, which are perfect for investors.
3. Lower House Inventory
Housing inventory refers to the supply of houses available for purchase. Low inventory means the demand is high, creating a seller’s market. When the prices of houses are high, sellers have the advantage in negotiations. Meanwhile, high inventory is more advantageous to buyers. They have more options to choose from because available listings are greater than the number of interested buyers, slowing down price growth.
In 2020, the UK’s housing market increased in prices, with supply remaining low because of the pandemic. The threat of contracting the virus made sellers hesitant to let strangers visit and enter their homes. However, with widespread vaccinations, sellers can get back on the market as COVID-19 constraints will gradually be reduced.
4. Activity And Openness Of The Market
In the United Kingdom, the real estate market is active and open. Real estate agents conduct in-person house viewings. The UK market is rising, and this is influenced by the temporary cut in stamp duty by the government. The UK House Price Index of the Land Registry shows an increase in the prices of sold properties in 2020. The average UK property price increased by 10% in May 2020.
5. Strong Single-Family Housing Demand
In 2020, older millennials had a great influence on the demand for single-family housing, which is expected to still occur in 2021. With more affordable prices in suburban areas and low interest rates, millennials started transitioning to detached homes and townhouses that can accommodate their need for personal space and their growing family.
6. COVID-19 Still Influences Home Buying Decisions
People who want to purchase properties will still make housing decisions depending on a particular area’s proximity to their loved ones in order to maintain relationships. Of course, others think that the closer they are to their workplace, the better for them since they won’t have to get exposed to a lot of people when commuting. Hence, real estate investors should continue taking trends related to COVID-19 into account when pricing their investments.
The real estate market in the UK is rising, which brings forth better opportunities for real estate investors in the country. By taking note of the trends mentioned, you’ll be able to figure out how to approach your investments so as to make the most profit. Of course, you still need to work diligently and establish a good online presence using digital marketing strategies to keep up with the competition.