If you're looking for a new business or investment vehicle, real estate is one that is foundational to wealth-building.
New home constructions have a combined value of more than $514 billion. When you'd like to stay up-to-date with changes in the housing market so that your efforts pay off, you need to understand how technology is playing a role.
Perhaps more than any other industry, technology will dictate the way we move forward with real estate. Keep reading to learn how technology will impact the housing market.
The field of property technology is growing at a nearly 17% rate, and artificial intelligence (AI) is a huge reason for it. Property technology, or proptech, refers to any form of technology that real estate to guide buyers through the customer journey.
AI uses data and analytics to learn the customer so that it's a smoother ride.
Real estate professionals are doubling and tripling down on their AI use in several ways because it gets results and sets the tone for how a lot of business is done. Examples of AI use in real estate include:
No matter how you use it, you need to understand how technology is becoming a mainstay in real estate.
Home buying technology is also influencing the way that people browse the homes that they are thinking about buying. Virtual reality (VR) is becoming more commonplace and gives potential buyers the ability to experience a home without ever having to even be in the same zip code.
Just as remote work is on the rise, people also feel more comfortable making deals for important things sight unseen. A thorough, well-done virtual tour can help sell a home as much as an in-person visit.
The definition of the virtual tour is expanding, since virtual reality technology, today makes it more realistic than ever. People can experience the home while wearing a VR headset and can take in sounds and other forms of interactivity that lets them know what they're shopping for.
Shoppers can also use VR to walk the neighborhood and get a real feel for what it would be like to live there. Using this type of technology simplifies the process and can expedite it since it quickly weeds out people for whom the home is a bad fit.
Home sellers today must be able to communicate with buyers in a way that's comfortable to them. We live in the technology age, and millennials now make up the largest segment of new homebuyers. This is a generation that is accustomed to using technology, so expect to see modern real estate professionals increasing these efforts.
It makes for seamless communication with the younger generation when technology remains a priority.
Embracing technology is also critical to real estate because the business model is changing. People are accustomed to going the do-it-yourself (DIY) route both for buying and selling properties. It's more possible than ever to do that since there are plenty of websites and services that cut out the middleman.
Many people today go on the entire journey without hiring or using realtors. Real estate professionals have had to study and adapt different forms of real estate technology in order to keep up.
It's also clear that cryptocurrency and other areas of blockchain technology are influencing the market as a whole. Expect to see more buyers and sellers doing business transactions in Bitcoin, Litecoin, and other forms of cryptocurrency.
Crypto has garnered widespread acceptance today, and there are many different creative accounts and investment opportunities available using blockchain.
Technology also plays a role in the way we communicate. The phone call is almost a thing of the past, as people today prefer to communicate via text, e-mail, chat, social media, and other methods of communication. Instead, phone calls are generally relegated to emergencies or important conversations.
Because of this, real estate companies have to be up-to-date on all forms of communication and need to stock up on the technology that facilitates it.
About 50% of homes in the near future will be smart homes. Smart appliances and other Internet of Things (IoT) devices are becoming more commonplace and influencing the way that we interact with the world and each other.
These devices allow you to get timely information without a single keystroke. It also changes how we shop and communicate, and gives us information at our fingertips.
Any new homes built today will include IoT capability.
When you're studying the housing market, you need to stay up-to-date on real estate technology and the ways it continues to play a role. Proptech, Artificial Intelligence (AI), and other forms of tech will all be driving forces for the next several years.
Realty Biz News can help you learn as much as you need to remain up to speed with what's going on in the real estate world. You can contact us for more information.