New RE/MAX Report Provides Deep Insights into Future of Real Estate in North America

As the lasting effects of the COVID-19 pandemic become known as it relates to how people live and work, a new RE/MAX report shows what real estate agents in the U.S. and Canada could expect moving forward. The takeaway? The landscape is changing but real estate agents and their ability to adjust will continue to play a pivotal role in helping homebuyers and sellers actualize their real estate dreams.

RE/MAX, whose agents were recently voted #1 Most Trusted Real Estate Agents in the U.S.*, compiled the report in partnership with its agency of record Camp + King and leading consumer insights agency Canvas8. The report identifies six key areas where societal and industry shifts are occurring and how real estate agents can respond.

The full 2021 RE/MAX Future of Real Estate Report can be viewed and downloaded here.

1.     Mass Digitization

While 94% of North Americans search for a home online and more and more are signing documents virtually, they also value real-life interactions, building rapport and receiving reassurance. Tech adoption and innovation continue to grow, of course, but 80% of North Americans report being interested in full-service agents, the report shows. When asked what would become more important to them in the next two years, respondents said trust and familiarity with an agent (61%), ease of contact/prompt responses (60%), good reviews online (59%), years of experience (58%) and fastest service (58%). Agents should remember it’s all about balance when it comes to technology; the consumer is interested in convenience but also in real-life interactions.

2.     Choice Reimagined

Purchasing a home is about enjoying a lifestyle. As more people look to work from home on a full- or part-time basis, priorities and location preferences have evolved too. Think larger yards, backyard pools, extra space, different locales and more freedom. When it comes to determining important factors about a property in a home search, respondents said the No. 1 factor was security (67%). Backyard (62%), bedrooms (61%) and floorspace (60%) followed closely. For an agent, being able to recognize this shift in priorities and the flexibility that comes with it can help them identify unique properties for their clients.

3.     Values Represented

Now that community is more important than ever, people are looking to live in homes and neighborhoods that reflect their values. For 77% of Millennials, one such value deemed important is having an eco-friendly home, the report shows. That number drops slightly to 70% for Generation X and 61% for Baby Boomers. Budget, it seems, also plays a part when it comes to determining the importance and desirability of a green home: 69% of North American buyers and sellers with a budget below $500,000 consider green homes important, while 89% with a budget over $500,000 report it being important. Knowing and appreciating what clients are looking for as they become increasingly more self-reflective and socially minded will serve both the agent and the consumer well.

4.     Creating Reality

Forty-three percent of buyers and sellers say renovation potential is important to them. It’s no surprise that after spending so much time in their homes in recent years, people are finding flaws and identifying areas for improvement. They’re also browsing homes online – often out of their price range – for hours on end. Agents, the report suggests, can help clients see the full potential of a home, while also helping to communicate what the needs are and who can help turn a drab home into a dream home.

5.     Safeguarding Positions

Here’s a stat to pay attention to: Younger generations are 47% more likely than older generations to consider homeownership a symbol of success. As the report shows, it’s a means of security for people, and for the majority of homeowners in the U.S., home equity accounts for at least 62% of their net worth. Homebuyers have had to act fast due to heightened competition in the real estate market, but in a quick-moving industry like real estate, agents should stay one step ahead of the market to provide additional convenience and better value to their clients.

6.     Opportunity Divide

With a real estate market as competitive as it is, and with spikes in home prices, there are additional barriers that younger homebuyers and minority groups have faced as a result. Affordability, down payments and higher tax burdens are just a few examples. The good news is agents can help clients navigate these hurdles and offer valuable guidance.

Research for the RE/MAX Future of Real Estate Report included a quantitative survey of 5,000 people in the U.S. and Canada, as well as interviews with consumers, three of the industry’s best thinkers, and real estate agents from RE/MAX, Redfin and Compass.

To read more about the findings, access the entire report here.

*Voted Most Trusted Real Estate Agency brand by American shoppers based on the 2022 BrandSpark® American Trust Study.

Get RE/MAX News delivered to your inbox! Sign up for News Alerts in the footer below.