For someone, the real estate market is the opportunity to become the owner of the first home. For others, it is the opportunity to expand or move to a more convenient area. It is also a way for some people to invest in order to achieve reliable savings or additional or passive income. For all these categories, it is essential to understand the medium and long-term trends, like using real estate maps.
GIS systems for the real estate sector
Commercial real estate map software is intended to automate the collection, systematization, and recording of information about real estate subsequently bonded to land. High competition in the real estate mapping software market caused a significant reduction in prices and the creation of new software that minimizes initial investment and makes it possible to increase the volume of projects as soon as the customer is ready. Real estate maps provide a solution to the following main tasks:
- Inventory of property and real estate resources;
- Information support for managerial decision-making;
- Increased collection of property taxes, real estate taxes, and utility bills.
Real estate maps allow you to link real estate and geodata to digital maps and perform tasks with the issuance of reporting materials.
Mortgage Interest Rates Are on the Decline
Back in 2019 mortgage interest rates were obviously getting lower. By the end of the year they dropped below 4%. Some economists predict that in 2020 interest rates are going to stop propping around
- 3.7% for a 30-year mortgage
- 3.2% for a 15-year mortgage
However, these prognoses are not set in stone. Things like tariffs and trade wars might influence the economy, which may force the Federal Reserve to increase interest rates to balance things out.
The Majority of Home Buyers Are Millennials
Millennials were the largest group (37%) of homebuyers in 2019. Every real estate broker knows - in this business, you should know your buyer. And millennials are internet savvy and do their research before house shopping. What can you do to leverage this treat using geodata?
- Upgrade your online listing using mapping software. 98% of millennials use the internet for a home search. 80% of them found their home on a mobile device.
- Highlight perks over the footage. Square footage still matters. But most millennials said they were least likely to compromise on neighbourhood quality when deciding which home to buy.
- Know popular features: laundry room (86%), hardwood exterior (81%), patio (81%), garage storage (80%), and a walk-in pantry (79%).
Competitive Price Monitoring Tools
As mentioned above, before buying something, people tend to study and compare prices online. The experience of interacting with the company is the main factor for the transition of one-time customers to regular customers. However, price is a serious driving factor, especially for new buyers. Monitoring your price history with the software will help reflect your market strategy. Monitoring competitors' prices with geodata allows you to get information about them, which is undoubtedly essential when analyzing the market. Based on the data collected with real estate maps, such as the price-quality ratio of the property and the target group, you can get an idea of your position in the market. In short, you must have a price monitoring tool!
Real estate investors are not going anywhere
There is a group that can be considered "real estate investors" - those who do not plan to live in new properties. And they can be divided into three classes:
- Passive, for whom, this is a way of saving money. As a rule, after buying a house, it can stand uninhabited for several years without repairs.
- Semi-passive, for whom purchasing a property is a source of regular income. A "semi-passive" or "modified passive class" that invests in renovations and enters the rental market.
- And speculative - those who want to invest at the initial stage of construction and resell after putting into operation.