Robot Realtors: The Rise of the Machines in the Real Estate Industry

January 25, 2023

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What you should know:

Artificial intelligence (AI) is revolutionizing real estate with tools such as 3D virtual tour software CAPTUR3D and automated value estimation tech Zestimate already transforming the nature of an agent’s work
AI's potential to combine with human intelligence and skills, can be used right across the real estate value chain to improve processes by absorbing huge amounts of data and creating insights from it
Tools such as computer vision, GIS and Predictive analytics, and NLP can be used to analyze data and identify patterns, trends, and buyer preferences
AI tools such as ChatGPT can generate more value from the extensive knowledge agents have of their portfolios, cutting down the time agents spend creating compelling listings and repurpose that time with potential and current vendors and buyers.

San Francisco's Real Estate Market: A Buyer's Market

San Francisco experienced the largest year-over-year decrease in median home sales prices of any metro in the U.S. in December, ending 2022 very differently than how it started. Prices were down 5.1% compared to the previous year
Even with prices down, buyers have realized they can be more selective, which means some homes may linger on the market. “The good properties will still move quickly. Those with some challenges could sit for longer”
The days of outrageous overbidding may also be behind us, at least for now, in December 2022, San Francisco’s close-to-list price was 99.1% — meaning homes are selling much closer to the listed price.
Sales volume overall was down 41%, according to a recent Compass report analyzing the Bay Area market in December. Luxury home sales (defined as more than $3 million) were down even more at 60%, and ultra-luxury (defined as more than $5 million) was down nearly 70%.

AppFolio has released its inaugural Property Management Benchmark Report which examines property management industry sentiment and outlook for 2023.
According to responses from nearly 5,000 employees at U.S.-based property management companies, there is a strong sense of optimism, with more than half (52%) intending to hire additional staff and four out of five respondents (81%) expecting their organization’s revenue to increase in 2023.
Property managers see the challenges before them, but still view 2023 as a year of growth, whether that means expanding their portfolios, hiring new staff and improving culture, or streamlining and automating existing processes to create a more efficient organization.
Inflation and delinquencies are the two primary concerns across all sizes of residential property management organizations, as cited by nearly half of respondents (46%).
Hiring and retaining talent are top of mind for all, but increase in prominence amongst larger organizations with more staff.
Improving operations, particularly streamlining financial functions, is key and Property managers have room to improve their tech stacks as they scale.

Student housing is poised for another solid performance in 2023 after record returns last year, according to the latest National Student Housing Report from Yardi Matrix.
As of December 2022, 48% of beds at Yardi 200 universities were already leased for the fall 2023 school year, a new record high for this time of year.
Rent growth also remained strong, at 4.7% annual growth in December, and is expected to maintain the same rate for 2023.
Student housing remains largely unaffected by economic volatility and is expected to do better in times of economic volatility.
Highly selective universities with name recognition are maintaining their interest among incoming students, while smaller schools are having more difficulty with enrollment.

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