One thing about the real estate market: It’s constantly changing. Any savvy realtor would do what you’re doing right now, staying updated about the evolving trends in real estate and adapting to those changes to remain relevant.
By staying on top of the trends and being mindful of what’s currently important in real estate, you can attract more clients, grow your business, and maintain a competitive edge. Stay with us while we tell you everything you need to know about real estate trends and how to keep up with them.
Technology Is Taking Over
As technology is taking over every industry, real estate is no exception. Not only are these technology tools providing convenience, but they are becoming necessary if you aim for success. Real estate technology has changed every interaction, from every listing to closing deals.
Tools like Artificial Intelligence (AI) and virtual tours are helpful for realtors in numerous ways. They drive more success and help with better engagement. Let’s take a closer look into how:
Artificial Intelligence (AI)
AI offers countless tools to make things easier for every realtor. It enhances realtors’ operation, ensuring you don’t miss any opportunity.
One fascinating application of AI is creating images exactly how you describe them. It creates lifelike images, enabling agents and buyers to view the property uniquely. These AI-generated images can help present the house in its best light.
However, it’s essential to know the risks—adding such images to MLS listings can cause legal issues if they misinterpret the property. That is precisely why we advise you not to do it. Instead, these tools will be more helpful for brainstorming ideas than official listings.
AI also significantly improves conversations and creates better relationships. AI-powered tools can streamline responses, offer property recommendations, and predict clients’ preferences based on previous interactions. These tools save time and provide a more tailored experience for your clients.
Specialized tools like Sprout further empower real estate professionals. Sprout simplifies marketing by managing and automating social media posts. It creates target ads, making maintaining a strong online presence easier while focusing on core tasks.
AI’s potential to revolutionize real estate with its efficiency and creativity is undeniable. All it requires is careful usage and understanding.
Virtual Tours
By leveraging AI, you can make your property listings more accessible. Real estate agents can create remarkable virtual tours, stimulating a realistic walkthrough experience. These tools are particularly for long-distance clients, helping you reach a broader audience.
Platforms like Matterport and Eyespy360 integrate AI to generate 3D tours of homes. These tools stitch together high-quality images to create an interactive experience. Buyers can view every corner of the property from anywhere. Some platforms take a step further and include AI-generated virtual assistants to answer questions and provide insights during the tour.
If you want an even more immersive experience for your clients, virtual reality (VR) is the way to go! Headsets like Meta Quest or HTC Vive bring these tours to life. Buyers can virtually “step inside” the property and view every detail as if they were present. These tools are especially for homes still under construction or renovation, as AI can portray what the completed property will look like.
Engagement enhancement and streamlining property marketing are not the only perks these tools offer. They also save agents time by showing properties digitally before showing them in person.
Real estate agents can create cutting-edge solutions that appeal to modern buyers by adopting these technology tools.
New Dynamics In Buyer Preferences
The Real Estate Market faces a significant shift in what home buyers seek. Their preferences are now evolving to modern lifestyles. There’s a rising demand for contemporary designs emphasizing flexibility and open spaces.
This shift in preferences has consequential implications for the real estate market, influencing everything from design trends to marketing strategies. Here are some of the latest market trends:
Modern Homes
Buyers are now prioritizing not only comfort but also technology. Designers specifically design modern homes to deliver that and more. These homes typically feature large windows for natural sunlight, open floor plans, and smart home systems that make life easy.
In addition to their environmental benefits and technology, buyers prefer modern smart homes for their aesthetic touch. They are looking for a combination of high-quality materials like glass, concrete, and wood. These touches create an inviting atmosphere that makes buyers eager to start living there.
Dark Home Interior
Dark home interiors are quickly becoming the new favorite designs. Buyers are opting for rich and bold tones that exude sophistication. The use of darker tones will make homes cozy and intimate.
As many people embrace these colors, dark themes are becoming the choice for many buyers because they add a sense of luxury without being overpowered. Proper lighting makes these homes feel calm and relaxed while modern and functional. It’s the perfect choice!
Multi-Functional Spaces
The trend for multi-functional spaces in the home has rapidly increased, particularly since the COVID-19 pandemic. As remote work became the norm for many people, so did the need for extra space. Even as the pandemic subsides, many individuals continue working from home and looking for homes that offer more than just a space to sleep and eat.
This flexibility is also essential for families needing homeschooling, workout rooms, or relaxation. The concept of “work-life balance” is beyond just working hours–it’s about having a space that allows you both productivity and personal well-being.
This preference shift is likely to remain a significant trend in the real estate market, as many buyers continue to find the comfort of having both work and leisure in their homes.
Evolving Population Steering Market Trends
We get closer to welcoming the new generation into the real estate market each year. Now is the time for Gen Z buyers to make a difference. According to BHGRE, 81% of Gen Z buyers believe they will work with a real estate agent to purchase a home. Now let’s go into depth about what they are looking for:
Gen Z seeks high-tech homes with innovative features like automated lighting and voice-controlled devices. As per the aesthetics, they look for small and cozy homes. Unlike the previous generation, they tend to steer clear of the more significant properties, such as expensive properties, and favor homes that fit their current lifestyle. Many of these buyers have just started their homeownership journey and mostly look for starter homes that are easy to manage and affordable.
Alongside these aesthetics, they also look for homes that support their work life. These preferences highlight a significant shift in the market that realtors should be on the lookout for.
Millennials
Unlike Gen Z, millennials are in a stage where many are starting families or looking for homes perfect for growing families. They look for more spacious homes with multiple bedrooms and large backyards. They prioritize homes in suburban areas closer to schools, parks, and other family-oriented amenities.
Additionally, their careers and financial situations are much more established, allowing them to invest in bigger homes for long-term living. This generation is drawn to aesthetics and seeks comfort and convenience. They also tend to put more value into the neighborhood, considering proximity to friends and family.
While both generations prioritize modern life, millennials focus more on finding homes that are more connected to their lifestyles and have enhanced features for their families’ day-to-day lives.
The Rise Of Short Term Rentals
Have you ever considered turning your home into a getaway that makes you money? Many people did—and it’s precisely why short-term rentals are the new trend in the market. The reason why people are considering this is that they provide homeowners with the opportunity to earn passive income while catering to the need for unique, luxurious, and travel-friendly residencies.
Platforms like Airbnb and Vrbo are opening many doors for homeowners and vacationers. Vacation homes, particularly, have become the new favorites. These properties allow escape, such as during holidays, and they also provide income whenever you choose to rent them out. In other words, you get it all in just one property.
Despite the many advantages these properties provide, they come with their challenges. The biggest ones are regulatory hurdles. Many cities now have strict rules against the rise of short-term rentals due to housing shortages and community disruptions. Property owners now must manage permits and restrictions that differ depending on the area.
Another area homeowners need help in is managing the property. Ensuring that the house is always in top-notch condition and handling guest bookings—the list is long. For owners with many other commitments, this might be challenging.
With the challenges and the disadvantages, the appeal continues to grow. With careful planning and proper market knowledge, vacation homes and rental properties remain a potential success for many real estate agents.
Economic Shifts Impacting The Market
According to recent reports about the economic shifts in the market, purchasing a home is more complex than it used to be. 2023 and 2024 were difficult years for home sales. But, according to NAR reports, 2025 will be a successful year. NAR released its 2025 housing forecast, predicting higher home sales. Research shows that if mortgage rates fall to 6%—as expected for the upcoming year–homeownership would be more affordable than if mortgage rates were 7%.
But, the financial barriers have significantly impacted what buyers prefer now, which is looking for homes in suburban areas.
During the pandemic, the demand for homes in the suburban area started in 2020. But, recent studies show that even after the pandemic has ended, home buyers are still migrating to suburban areas due to many factors, financial issues being the most major.
Suburban areas balance space and affordability perfectly, making them appealing to families, remote workers, and those looking for quieter living environments. These homes offer access to larger homes, outdoor spaces, and stronger community bonds. Suburbs are generally considered safe areas with better access to facilities and schools. Alongside all these benefits, low taxes are also one of them.
Given all these advantages, it’s entirely understandable why suburban areas have gained such high traction.
Oley’s Solutions For Navigating Market Trends
What’s one trend that is predicted never to end? Professional real estate websites! There’s no one more qualified for this than us.
Here’s what we do best: The Oley team provides real estate agents with IDX/MLS-enabled websites that feature the latest search functionality for prospective buyers and integrate lead-generation tools to help you get more clients than ever! In an era where digital presence is more important than anything, your website is the first thing clients look for, and we ensure it’s perfect.
Our websites are stunning and adapt to every vital market trend, such as virtual tours and information-rich online listings. We provide your clients with an immersive experience.
So, why miss out? Get started today!
Explore our pricing plans to find the perfect plan for your needs, and book a free demo to see how we will go above and beyond to make your business shine—without breaking the bank!
Your dream website is just a click away!
Summarizing Key Takeaways On Evolving Trends In Real Estate
In conclusion, these market trends constantly evolve; staying updated and adapting to them is crucial. It’s how you stay relevant in the market and make yourself a trusted agent.
When you care about your client’s needs and what they are looking for, you stay updated on all the necessary details. You reflect your care in the things you share with your clients, the information you pass on, and the efforts you invest in their homes—not just to sell them but to help them find their dream homes.
Partner with us to deliver the best for your clients and to achieve your real estate goals; we’re here to provide the best!