Real estate trends is a generic term used to describe any consistent pattern or change in the general direction of the real estate industry which, over the course of time, causes a statistically noticeable change. This can be a result of the economy, a change in mortgage rates, consumer speculations, or other fundamental and non-fundamental reasons.
A real estate trend is the catalyst for the change, and it is usually a concept, a belief, a philosophy, or an event. Sometimes a real estate trend evolves to meet a specific need, while others evolve when new products or solutions are launched. For example, when more lenders began offering creative financing products, more borrowers were able to afford a mortgage (at least on paper). At other times, a trend from another industry spills over into the real estate industry and is adopted.
Therefore, a trend must have substance and be based on fact. Over time, it will cause pattern of change. Monitoring changes and tracking trends is a not an exact science and can be very hard to predict.
The residential real estate brokerage industry is approximately half way through a 10 -15 year industry transition. This major shift is creating a fundamental change in the way homes are being bought and sold and the role the real estate agents are playing therein.