Real Estate Trends Investors Need To Know This Summer


Today’s greatest real estate investors know it, and it’s about time you did, too: real estate trends, or at least the ability to translate them, can prove invaluable to the advancement of one’s career. Real estate market trends are, after all, the perfect indicator for divulging not only where a market has come from, but also where it has the potential to go. The more investors know about today’s emerging trends in real estate, the more likely they will be to realize success. But, of course, not all trends are created equal; some are inherently more valuable to follow than others. The key is to identify the trends most likely to last and capitalize on the position they may place you in.

Real Estate Market Trends Impacting Buyers & Sellers This Summer

The weather is on the brink of heating up in nearly every real estate market, and that means one thing for those with their finger on the pulse of the national housing sector: things are about to get a lot more interesting.  If for nothing else, the summer real estate market represents the busiest time of the year. It is at this time when the whole of the entire housing market gains an incredible amount of momentum from both buyers and sellers. It is worth noting, however, that the summer real estate trends of 2018 look perfectly comfortable mimicking those of the previous years.  The trends we have seen up to this point, and even the trends we should expect for the foreseeable future, are to be expected.

To be perfectly clear, there are a number of real estate market trends that are impacting buyers and sellers this summer, not the least of which include:

  • Homes Are Selling Fast
  • Homes Are Receiving More Offers
  • Homes Are Becoming Less And Less Affordable
  • New Hot Markets Are Emerging
  • Buyer Preferences Are Changing
  • Inventory Remains Restricted

It shouldn’t surprise buyers or sellers to learn that these trends look like they will carry over into summer.  That said, it would be wise to familiarize yourself with them on a more intimate level. The more you can expect to glean from the upcoming summer real estate market, the more likely you are to navigate it with success.  Who doesn’t like the sound of that?

If you are interested in giving yourself a competitive edge this summer, you’d be wise to learn as much as you can about what to expect.

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Emerging trends in real estate

Home Sales

Of the real estate market trends most likely to carry a lot of weight in today’s investor landscape, home sales deserved to be talked about first.  It is home sales, after all, that serve as one of the most important market indicators for gauging an area’s health, and those that take place over the course of summer are no different.  Home sales will take place at a fierce pace this summer. According to Zillow, the average home lasts on the market for 78 days, but don’t get to caught up in that number. If anything, that number will witness a decrease in the coming months, as it does every summer. Case in point: home sells will speed up as the competition heats up. There are simply too many buyers eager to get into a new home, and summer appears to be the time they hope to do so. As an investor, take note of the speed in which buyers are willing to move; it’s one of the real estate trends most likely to be maintained by the state of today’s market.

High Demand And Affordability

Few housing markets across the United States, if any at all, have managed to solve the largest problem facing the real estate landscape: inventory levels, or lack thereof. More specifically, however, supply and demand is currently dictating today’s exponential increase in prices. It is worth noting, however, that demand hasn’t taken a step back. The economy is better off today than it was even a few short years ago, and there are more buyers looking to participate in the housing market, but there’s one problem: there aren’t enough homes to satiate demand. All year, in fact, prospective buyers have wanted to partake in the market, and have been met with opposition around nearly every single corner, and it doesn’t look like this summer will offer a solution. That said, investors should go into summer knowing that they aren’t alone. The next few months will be competitive to say the least, which means success will favor the prepared more than ever. As an investor, factor the competitive nature of today’s market trends into your acquisition strategy. Instead of lowballing sellers, try offering a little more, or even exercising an escalation clause. Real estate price trends suggest inventory levels will only continue to drive up prices, so be prepared for the cost to go up. Doing so could mean the difference between having your offer accepted or ignored.

Hot Markets

Hot markets are, for all intents and purposes, a relative classification. Nearly every market in the country is firing on all cylinders at the moment. However, there are markets that are doing better the others. Most notably, the California real estate market appears to be setting an incredible pace. Whether or not that pace is maintainable remains to be seen, but there’s no denying the activity currently taking place in The Golden State. More importantly, the California real estate market has several of the “hottest” markets in the country, not the least of which include:

According to, California accounted for 13 of the top 20 hottest housing markets as recently as the first quarter of this year.

Real Estate Technology Trends

The advent of technology has certainly shifted the way things are done in every industry, and the housing sector is no exception. Real estate technology trends have drastically improved the way people take on what can be, at times, an intimidating industry. Real estate technology serves one purpose: to make our lives easier. It is safe to assume that investors using the right technology are at an advantage over those that, well, aren’t. The key, however, is to adopt the right technology. There are technological advancements that are far superior to others, and it’s in your best interest to use those that will give you the best edge. Here are some of my personal favorite real estate technology trends at the moment, and how they can advance your career:

  • Virtual Reality: While still viewed by many to be in the infancy of its usefulness, virtual reality has the potential to disrupt the entire industry, and those that get in early could reap significant rewards. At the moment, there really is no limit to its potential. Investors could give tours of homes to multiple people without even setting foot inside. The time it could save, alone, may be worth the investment.

  • Drones: As you may have already guessed, drones represent the next evolution of real estate photography. That said, great photography is already invaluable to real estate investors. As I already mentioned, it can help sell a home faster and for more money. It’s only a matter of time until drones fall into the same category. Sooner rather than later, drone photography will be expected, not just an added bonus.

  • Big Data: Real estate market statistics serve an invaluable purpose for investors. The more data investors have on an area, the more likely they are to realize success. And, as it turns out, big data is one of the current real estate trends investors need to take advantage of. If for nothing else, it’s big data that tells us everything we need to know about an area and how to work in it.

Commercial Real Estate Trends

Real estate market trends aren’t relegated solely to the single-family landscape; they are also present in the commercial sector. Here are two of the most important trends investors should be keeping an eye on this summer:

  • Interest Rates: General consensus suggests interest rates are going to rise for the foreseeable future, but many will be surprised to learn that rates aren’t rising at a rapid pace. It’s true, rates have increased, but they are still relatively low, which is actually great news for those keeping their finger on the pulse of commercial real estate trends. According to Forbes, “if interest rates are not going to rise significantly in the coming year, the benefit would be that the cost of borrowing and the value of properties can be expected to remain stable, all other things being equal.”

  • Retail Regression:Despite many companies trying to reconnect with their customers, it would appear as if the majority of their efforts have failed, from a brick and mortar perspective. The advent of today’s online marketplace, where literally anything can be purchased and conveniently delivered to your doorstep, has made most brick and mortar retail shops obsolete. As a result, we are seeing fewer business invest in storefronts in the commercial real estate sector. Even large companies are finding it harder to maintain a physical storefront. We may see some significant changes in the use of commercial real estate. This summer will be very telling of how many commercial real estate trends will unfold.

Real estate market trends

Emerging trends in real estate don’t necessarily have to come out of nowhere. The majority of the real estate trends I spoke of here are the result of months, if not years, of anticipation. They are now trends because they appear ready to carry over the momentum they have already generated into summer. It is worth noting, however, that those aware of what’s going on stand a better chance of realizing success, and today’s investors are no exception. If you want to give yourself an advantage over the competition, be sure to listen to what the market is saying; it may be the only thing you need to take your career to another level.

Key Takeaways

  • Paying attention to real estate market trends comes second to none, as the insight can be invaluable.
  • Today’s current real estate trends look like they will stick around for the foreseeable future, so take not of what’s happening.
  • The real estate summer season is just starting to heat up, so prepare yourself for what’s to come by looking at the most important trends.