The Future of Real Estate?

Many people are wondering what the future holds for Realtors and for Real Estate in general. With the advancement of A.I., a lot of people have genuine concerns about their future in the workforce. People are using artificial intelligence for a myriad or purposes. Art, to write articles, robotics, you name it, A.I. is probably working it's way into it. A.I. is even responsible for designing one of my tattoos. 

It's not perfect, it can't replace all aspects of things humans do such as personality, human touch, interaction and so on. Humans generally crave closeness and A.I. can't replace this yet. (don't worry, it's coming)

But what about the future of Real Estate? 

Many companies have tried to work their way around using Realtors. I can name a bunch, every single one of them has failed miserably. Some Real Estate companies use online tools and super basic ways of pricing homes. It's simple! type in how many bedrooms, how many bathrooms and boom! you have an estimate! The problem is, they're wildly inaccurate, giving homeowners super unrealistic expectations for what their home is worth. I see it all the time. There are SO many factors these ultra basic, sites use to ineffectively give a home price that's typically off...by a LOT! I've seen homeowners tell me they checked out a website and it said they're home was worth 1.3M while the one 2 doors down sold 2 days ago for 800k. So Steve and Sally refuse to believe what the home's value actually is and what they can expect to get for their home if they sell. I use far more effective ways to determine a home's value than simply plugging in the basics. It takes a lot of research.

I have a lot of people telling me that A.I. is going to take over the real estate industry. I think it will be impacted, i'm sure it can do some basic functions, a lot of Realtors refuse to believe that they are replaceable. Are they? It really depends who you ask. I know a lot of people, perhaps even Realtors use A.I. programs to write articles, research information and for other functions. Chat GPT seems to be everywhere. 

The economy is changing, Canadians don't have spare money for extra fluff these days, a lot of our decision making is based on affordability. 

So when it comes to the future of housing affordability, a lot of people say the market has to crash and they're waiting to cash in at the demise of others in the housing market. 

I'll tell you what I think.. the cost of housing is going to continue to rise. I recall reading an article several years ago about the prediction of the housing market in a decade. it predicted that around 2030, the average home price in Toronto would be 3.5M. Can you imagine?! Only Elites would be able to afford housing. The average Canadian is already riddled with debt. Most of us live well beyond our means. Not this guy. I enjoy my 5 year old dad mobile. 

Since wages don't seem to rise at nearly the same rate as housing, and we aren't building a fraction (legitimately) of the housing we need, it will continue to get more expensive. It's simple. Supply and demand. The Canadian Dream is just that for almost everyone now. Home ownership is a dream.

A lot of baby boomers will say that it's because of the lavish lifestyle the younger generations live. Those who believe this are old and stubborn and have no idea what life is like now for the new generation. Work doesn't value it's employees, no raises, unpaid hours, and the cost of living, don't even get me started. Let's be realistic here: the baby boomer generation had it better than any other generation prior to or after them. 

The Future? I see people banding together to buy home. friends with friends, family with family, investors, etc.. housing costs won't come down and typically when they do, those with money just pay more, outbid the folks who don't have the money to compete. The wealthy will buy more investment properties. It sucks, but it's life and it's how things work. 

I actually find it interesting that when someone lives with family, it's a "red flag" prior to the boomer generation, this was the norm. Boomers actually had it good enough they could afford to move out. Read any old book or watch an old movie. family lived together and it was normal. Noone looked down at anyone else for it. Often times, children didn't move out until they got married! I think some newcomers to Canada have it right. Large families living together and supporting each other, putting their funds together to buy. And it's working. I have had conversations with them about this. I'm sure it comes at a sacrifice but if you want anything good, you have to make sacrifices. I think this is a great example for others actually. Make living with family normal again. Put your money together, make sacrifices and buy. I always joke around with my kids and tell them they're no allowed to move out, but they're still young and have time to sort things out.

So, that's it. A.I, pool your money to buy, the housing market may crash but it always comes back up. I wouldn't wait for a crash, as I mentioned above, there's always someone with more disposable income, a bigger house, nicer car and bigger bank account.