The US real estate industry has survived a significant hit from covid-19 that necessitated the digitization of transactions. The sector is facing mortgage interest spikes driven by high inflation due to the Russia-Ukraine war that has fueled the housing sector recession in the US.
The average interest rate for a 15 years mortgage as of September 2022 is 5. 80% up from 2.18 same period last year.
Here are the major transformations that will define the future of the US real estate market.
Blockchain Technology
Before technological evolution, the purchase and sale of real estate were offline. Technological innovations through cryptocurrency have facilitated the digitization of the industry. Blockchain technology disrupts the real estate industry through fractional ownership and tokenization mechanisms. Fractional ownership is a strategy by realtors to share the costs of building or maintenance of property among its shareholders.
You can convert your real estate properties to digital tokens that represent real assets. Your customers can purchase a fraction of your tokens and pay you through cryptocurrencies into your e-wallet. The value of your tokens fluctuates depending on the actual value of the properties. When the value appreciates, the tokens’ value increases, which allows your customers to earn higher profits.
Application Of Machine Learning In Marketing
Machine learning has been widely applied in all business sectors, and real estate has not lagged behind its adoption. With artificial intelligence, you can optimize your marketing campaigns for maximum impact. Traditional marketing methods require the marketing department to spend a lot of time engaging customers to increase the chances of conversion. Machine learning saves you funds and time and generates easily converted leads.
Applying AI in your marketing campaigns makes it possible to analyze the methods that serve you best. The technology also employs smart algorithms to allure customers to your websites, boosting lead generation. You can leverage the technology to segment your customers to ensure you send marketing messages that best suit them.
Virtual Real Estate Tours
Technology savvies have developed virtual reality software that lets your customers have a 360-degree view of your properties. Technology has increased customers’ experience because they can have a touch of what they want to buy. They no longer have to travel to your apartments to view their features.
The virtual viewing software would enhance quicker maintenance. You can analyze your property to identify if it has tears and wear that need reparation. The timely renovation would help your apartments maintain value.
The Rise In Mortgage Interest
The US 30-year national homeownership mortgage is 6.43%, up from 2.65% in 2021. The increasing interest is causing the construction of apartments expensive. Realtors are therefore forced to sell their properties at a higher price. Your customers will seek financing from realtors selling their houses at low prices. You, therefore, need to seek funding from a low-interest mortgage Brokerage Company.
Wrap Up
The real estate industry is ever-evolving, and you must be abreast of the changes to remain afloat. Mentorship from the industry’s trailblazer would keep you ahead of other realtors. Chris D Bentley offers mentorship on the emerging trends in real estate to give you an edge over other realtors.
Connect with him to learn all you need to know as you focus on the future of the industry on Twitter at @https://twitter.com/ChrisDBentley or LinkedIn at https://www.linkedin.com/in/chrisdbentley/
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