High Buyer & Low Seller Activity - What Else to Expect from Real Estate in 2024
Hello and welcome to the Proptech Friday edition, your hub for the latest developments in real estate and proptech. I'm Wes Snow, your guide through the most recent news and innovations. Without delay, let's dive into the freshest updates!?
In the dynamic landscape of 2023, property buying trends were significantly influenced by soaring interest rates and inflation. However, according to the company’s research, we should expect high buyer and low seller activity.??
The survey also highlights factors affecting buyers' decisions, with 76.1% of buyer agents reporting clients pausing or stopping their home search.??
Interest rates (72.1%) and low inventory (34.4%) are identified as key challenges for buyers.??
Sellers, on the other hand, are influenced by various factors, including rate fluctuations, the need to find alternative housing, and challenges in achieving desired home prices.??
Now let’s move to the news in proptech investment and real estate startups.??
And these are questions we all should be asking ourselves if we want to succeed in the industry. Firstly, is hybrid work effective and should we reshape office spaces? Secondly, how can we solve the rising demand for net-zero offices as it surely poses challenges in meeting supply, especially in the US, Asia Pacific, and Europe??
Finally, there is AI. We can’t face the future without it, but can we improve its regulations? Why we don’t have clear answers on these issues, asking ourselves these questions is a great way to spark a conversation.?
EQT X fund is set to invest in Nordic software companies, HVD Group and Next, both serving the tradespeople and construction industry.??
HVD Group, with over 10,000 customers, provides cloud-based field service management and enterprise resource planning software, while Next offers a cloud-based solution to construction firms with a strong complementary fit.??
The investment is expected to create a leading Northern European platform, supporting continued high growth in the industry. The transactions are set to close in February 2024, with EQT X being 30-35% invested based on the target fund size.?
Lessen has announced a strategic partnership with Darwin Homes, a proptech single-family residential platform owned by Pagaya Technologies.?
The partnership aligns with Darwin's commitment to leveraging technology for property management services and Lessen's mission to disrupt and modernize the property management industry. The initial focus is on repair and maintenance services, with plans to expand to additional services under the unified Lessen platform.?
Climate change is reshaping property insurance costs, challenging states like California and Florida. As insurers withdraw from high-risk areas, state-run insurance companies emerge, offering affordability but posing potential major losses. To counter this, states are seeking private alternatives and reinsurers.??
Proposed regulations may hike premiums, leaving us to wonder: how will this evolving landscape impact the accessibility and cost of property insurance across the nation??
Did you hear about the recent strike authorized by NYC’s building service and maintenance workers union? Well, now you know! A week later, the union reached a new contract with the Realty Advisory Board lasting until December 31, 2027.??
The deal includes pay increases averaging 3.02% annually over four years, a $3,000 bonus, and a 10% pension benefit boost for future retirees. In return, building owners gain concessions for streamlined staffing processes and increased flexibility to adapt to changing space utilization, especially due to remote work.?
Let’s finish our last proptech edition this year with the affordability housing insights.?
Manufactured home prices, also known as mobile homes, have surged faster than traditional single-family homes in recent years, rising 77% on average from 2017 to 2022. This challenges their historical reputation as an affordable housing option. With the highest average mobile home prices in Idaho and the lowest in Kansas, buyers face unique challenges like rental fees and financing difficulties.??
Now I wonder what role mobile homes will play in the future of affordable housing, and how buyers will navigate the changing dynamics of the real estate market. What are your thoughts on that??
Well, folks, that’s all for today.??
As you anticipate more updates in 2024, don't hesitate to contact us or book a free proptech call if you're looking for a trusted ally in proptech software development, boasting decades of expertise. Whether you require CRE consulting, a tech audit, or are keen on exploring the potential proptech holds for your business, we're here to assist.??
Our dedicated team is ready to tailor custom pr solutions to your unique needs and propel your proptech journey to new heights.?
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