There are plenty of obstacles for the real estate industry including various factors which are beyond the grasp of the business owner like the downturns in the national and local economy. Other factors also include the changing demographics of demographics where certain agencies are located. Another thing that is beyond the control of the owner is the building of properties and what properties are made available in the area. For those in the management of properties sector, indoor air quality liability has also seriously become a very legal issue in the past few years. Removal of mold growth has been increasingly necessary for property managers and owners.
The use of advanced technology will also contribute to the transformation of the industry in the years ahead. This will enable the home buyers to research the properties in the area where they are located and be able to see pictures of the properties. They can also scout ahead about the neighborhood’s crime rates, schools and other pertinent statistics. Marketing over the internet using pictures of properties as well as virtual tours will become crucial for brokers. Research shows that about 90 percent of people consult the internet first and do research before purchasing real estate products. Another important factor to consider is the growth in the US population. The workforce of the country is expected to expand to about 14 percent between 2008 and 2018. The advancement of internet can eliminate the need for brokers in the future. One of the potential competitors in the industry includes banks. Not until recently, they have already been freed by rule amendments in that they can participate in commercial real estate but in a limited way. It is not far-fetched that this rule will soon change in the future and will also allow them to enter and participate in the residential area. The biggest growth areas are expected in southern region of America particularly in the Southwest areas.
Even in spite of the underperformance of the economy, the industry is expected to still grow in the future. Brokerages and related businesses like HomeUnion investment commissions are also expected to grow this year and in the coming years.