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Prescott real estate market issues and trends in 2017 and 2018
The real estate market is influenced by several factors, and according to the Counselors of Real Estate® (CRE), the top issues surprisingly are political polarization and global uncertainty both on a local and international level.
CRE is an invitation-only professional association for the industry’s top real estate advisors. During the conference, 1100 members from around the world gathered to identify the issues and trends that will most likely influence real estate now and in the foreseeable future.
CRE recently released it's top ten issues that will affect real estate in the coming months and into next year during the National Association of Real Estate Editors annual conference in Denver and the trends cover a vast array of issues.
Current issues affecting the real estate market
- The technology boom which includes commercial real estate technology innovations, robots, autonomous vehicles and online retail.
- General disruptions as “Boomers’ and millennials’ divergent views of where they live, work, and play increasingly impact the property markets,” the report notes.
- Retail disruption. The face of retail continues to change as the physical brick, and mortar stores are facing a dilemma as shoppers continue on their journey by exclusively shopping using the virtual versus brick and mortar platform.
- Infrastructure investment as the private sector is recognizing the need and long term rewards of investing in the aging and highly susceptible interior framework of which we all rely on to move goods across the nation.
- Housing disparity is seen as a critical factor as “A current lack of inventory has generated a spike in home prices and, as a result, declining affordability for many home buyers, particularly those in lower-income sectors. A critical disparity exists between housing needs and housing supply.”
- The middle class threat continues as the income levels have yet to bounce back from their pre-recession highs and stagnant income growth continues to squeeze the middle class.
- Healthcare in real estate has taken a surprising turn. According to the report “Building occupants are increasingly demanding that the space they inhabit be designed, constructed, and operated in ways that advance positive health outcomes.”
- Immigration extends into the real estate market as we move toward more restrictive laws some housing lenders have a rising concern about future labor shortages in the home building sector.
- Climate change factors into the real estate market as the National Oceanic and Atmospheric Administration released a report on the rising sea levels. According to the report. “Major cities such as Miami, New York, New Orleans, Tampa, and Boston are projected to have the most costly problems, with South Florida and most coastal areas all exposed to differing levels of sea rise risk and cost. The implications of the potential sea level rise and related flooding on real estate values is positioned to explode due to dramatic increases in the volume and accessibility of information on the consequences of sea rise.”
Although the list is long and in some cases appears alarming, according to 2017 CRE Chairman Scott Muldavin. “Despite this unsettling environment, opportunity remains embedded in every issue on the list.”
If you have questions about how trends are affecting the real estate market in Prescott contact Kathleen Yamauchi Group real estate today to learn more.