The real estate industry is massive, holding a higher value than all stocks and bonds combined. Despite being the largest global asset, it tends to be delayed in terms of technology adoption. In the United States, $3.5 trillion is contributed annually by real estate to gross domestic product value, yet the most commonly used technology for many firms is Microsoft Excel, a tool more than three decades old.
Here are the hurdles in the industry, and why realtors are optimistic despite them.
Realtors Expect Big Things in Coming Years
Even with tech-lag in the industry, real estate professionals are optimistic about the future. According to the National Association of Realtors® (NAR), there’s an expectation for profit growth over the next two years, and 60% of firms expect growth over the next 12 months. That is wonderful news for those nervous about the changing landscape.
With the constantly evolving climate in realty, NAR has voiced its hope to “stay ahead.” Mr. Goldberg, the association CEO, has assured realtors that resources will be there when needed, which suggests that there may be some new technology in the future after all.
Loosening Ties on Tech Restrictions
Already, the bindings on tech logic for real estate are unwinding. With the introduction of online rental and purchase tools, the industry is finally seeing some light. Sites like Airbnb were unheard of 15 years ago, and it was only 10 years before that when Craigslist debuted. Before rental websites were available, consumers had to contact a realtor or rental agent in person.
The modern consumer is doing everything online. In 2019, it’s estimated that roughly 1.92 billion consumers will shop over the internet. With so many realtors still marketing by word of mouth, that’s a lot of sales to miss out on.
Realty Trouble Still on the Horizon
Some of the challenges facing the market are housing affordability and competition from non-traditional market participants. With generational changes to the housing market, realtors are seeing a depletion in buyers. Millennials seem less concerned with homeownership, and 58% of firms aren’t sure the demographic could afford homeownership if they were interested, according to NAR data.
Another challenge reflected in that data was shrinking firm size. Since 2017, 80% of firms have dropped from three full-time realtors to two. Most also hold a single office per firm and have lost revenue over the past three years.
New Home National Title is Title Insurance Reimagined
Fortunately, there are some companies in the industry working to overcome these barriers. New Home National Title strives to take pressure off realtors and homeowners. Our Elite Closings program provides the technology most realtors are missing to close gaps and streamline services.
New Home National Title works with both commercial and residential clients, offering the highest level of service. From start to finish, our experienced team is here to remove the guesswork and promote success for all.
Currently working from Texas, Colorado, and Florida, we’re reinventing the way the world views real estate. By introducing fresh, innovative technology that the industry is so sorely lacking, we simplify the closing process for all stakeholders in a transaction.
For more information on our Elite Closings program and our services, contact us today.