Whether you’re an agent, a prospective homebuyer/seller or simply a consumer of the nightly news, you're well aware of the challenges the real estate industry faced in 2023. Low inventory, high interest rates and affordability issues kept even the most motivated buyers and sellers from taking the leap, and signs point to only small improvements in this trend for the near term.

According to a November HousingWire forecast, “We are in a new era for mortgage rates... prospective homebuyers should expect rates to settle between 6 and 6.5% next year.” The same forecast projects that housing supply will remain low in 2024, due in large part to the fact that Baby Boomers — a demographic that makes up a quarter of the U.S. population — are staying in their homes longer. Having secured mortgage rates under 3% over the last several years, and facing limited inventory for downsizing, this group remains reluctant to list their homes for sale.

Industry veterans have had to take a hard look at things and use the “downtime” created by a low-volume environment to refocus our energy on truly understanding our audience. What will the real estate consumer of 2024 look like? How will they behave? What motivates them? What do they value? Maybe most importantly, how do we meet them where they want or need to be?

Answers to these questions start to take shape if we examine a mix of market dynamics and consumer trends. Sustainability, information security and tech savviness have risen to the top in recent years as compelling aspects of brand value propositions and will certainly continue to influence consumer buying decisions in 2024. And consumers are placing more emphasis on trusting relationships as they contemplate purchases. According to Mintel’s 2024 Global Consumer Trends, “in a world increasingly dominated by algorithms, we will need human skills and emotion to make the most of the technological revolution.” Finding this balance will be critical for those of us in real estate, as we help people navigate one of the biggest transactions they’ll undertake in their lifetimes.

Among the countless product and company attributes influencing consumer behavior today, there is one that will define success for those of us in service industries more than any other in the next year: our ability to make life easier for consumers. In real estate, this translates to simplifying the home buying and selling experience.

In a time of uncertainty across the board — from lingering pandemic fears to geopolitical unrest to stock and bond market volatility — human nature is to seek out stability. A recent consumer research report from Accenture found that “amid the pressure of life forces and the chaos of everyday life, what customers ultimately need is simplicity. They are drawn to anything that cuts through the noise and makes their decision-making—and their lives—easier. Businesses that want to stay relevant need to find ways to clear the path for consumers to walk easily. To do this, companies must simplify from within by being ruthless about prioritization, and continuously evolving.”

And part of simplification is convenience. Why make five stops if I can make one?

Earlier this year, Brandwatch published its 2023 consumer trends study, which found that “of all the purchase factors analyzed, convenience is the one that has grown the most over the past twelve months, with a 12% increase in mentions compared to the previous period. Consumers are talking about a convenient shopping experience and praising products and services that make their lives easier.”

With so many pieces in the real estate transaction puzzle—from relocation to financing to title to insurance—how do we provide a convenient, one-stop-shopping experience for consumers and the agents who represent them? How do we keep agents at the center of the transaction, so we never lose that crucial “human touch?” How can we streamline a process that involves stacks of paperwork and countless phone calls to deal parties to meet deadlines? And how do we create value for those on the front lines—agents, for whom time is money, and the teams that service transactions day in and day out?

How do we make life easier?

That’s the question we need to answer in 2024.

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About Don Casey

Don Casey is President and Chief Executive Officer of Anywhere Integrated Services. He was appointed to this role in 2002, and the company has experienced tremendous growth throughout his tenure. Don is also a member of the board of directors of Guaranteed Rate Affinity, LLC.

This material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. The material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. Intended for distribution to only one per individual for marketing purposes only on behalf of our company. Not for reproduction.