In addition to his work in media, Roy Dekel is also the founder of SetSchedule, a real estate tech company. SetSchedule reviews real estate data using machine learning to identify potential leads for agents. In a year when normal networking has been difficult, this has provided agencies with new ways of generating business. Today, SetSchedule takes a look back at the real estate market in 2020.
A Hot Housing Market
At first, it looked like the pandemic could be bad news for home sellers. Lockdown restrictions made it difficult for potential buyers to view houses, and furloughs and layoffs likely took some buyers out of the market. However, other factors quickly drove an increase in buyers and prices.
As more and more people found themselves facing months or even a year or more of working from home, and as families had to adjust to distance learning, many found themselves wanting a bigger home, with a dedicated office space. Alongside that, lenders began offering lower interest rates. 2020 was suddenly a great time to buy.
Increased Demand, Decreased Supply
As more people looked to buy, simultaneously, fewer people were looking to sell. Some homeowners took their homes off of the market, canceling or delaying plans to move or downsize during a pandemic. In some regions, construction of new homes was delayed as the industry was at least temporarily declared non-essential, requiring workers to stay home and leaving homes half-built.
This has created a frustrating situation for real estate agents who want to be able to offer a good selection of homes to potential buyers. For agents who are having trouble finding leads, SetSchedule reviews local real estate market data and determines which houses are most likely to go on the market soon and how much they will sell for.
Home Sales at a Record High
In August of 2020, home sales hit a 14-year high. Prices have been soaring alongside sales, thanks to the combination of supply and demand. Some buyers are finding themselves frustrated, as these increased prices can negate the savings offered by lower mortgage rates.
The market may hit a crisis point, however. Supply cannot keep up with demand. Many markets were already experiencing a decade-long shortage of new home construction, and this only exacerbates it. Denied the benefits of living in a city (nightlight, restaurants, public transportation), many are abandoning their high-density apartment living and looking to a house in the suburbs, driving up prices in these areas.
As prices go up, people in certain income brackets are increasingly finding themselves priced out of the market and denied the opportunity to pursue homeownership.
SetSchedule Reviews the Past and Looks to the Future
It’s hard to say what 2021 will bring. A lot rides on whether an effective vaccine can be created and distributed. If the pandemic continues to spread, and the construction industry cannot keep up with the demand for new single-family housing, things could get dire.
SetSchedule reviews data and makes predictions with a machine learning algorithm. However, it doesn’t take artificial intelligence to see a bubble in the making. Real estate agencies need to be cautious of what will happen if the current price growth continues.