Technology is playing an increasingly important role in the real estate sector, complementing agents and brokers’ efforts to build relationships and deliver value to homebuyers, sellers, and investors.
Technology has grown tremendously over the past decade, and this year industry experts spoke about technology in real estate at the National Association of REALTORS® (NAR)’s annual REALTOR® Conference & Expo, held in person at the San Diego Convention Center. We talked about the future of applications. In California, from November 12th to 15th. What’s the consensus? As the world becomes 5G-enabled, artificial intelligence continues to evolve, and businesses embrace streamlined technology ecosystems, countless opportunities will emerge.
The session “Emerging Technologies and Strategic Trends You Should Know About” featured panelist Dan Wiseman, Director of Emerging Technologies at NAR. Jeb Griffin is NAR’s director of strategy and innovation. And he is Dave Conroy, director of emerging technologies at NAR.
Wiseman told the audience that $25 billion is invested annually in proptech around the world, $10 billion of which is in the United States alone.
“Investment in real estate technology shows no signs of slowing down,” Wiseman said. “We expect technology to continue to play a key role in the growth of the industry.”
Today, the role of technology in real estate is primarily one of integration, streamlining multiple processes into one platform, saving time and increasing productivity.
“We’re starting to see larger companies coming into their ecosystem platforms and investing in, buying or deploying to leverage that technology instead of other products,” Griffin said.
He said the technology spans multiple uses, including CRM, marketing, document management, lead generation, electronic signatures, and titles.
The key is to focus on technology that saves time, improves business efficiency and helps more businesses, Griffin said, adding that the sector currently stands out in terms of technology integration. He added that there are several major companies: CoStar, Homes. com, Apartments.com, Homesnap, etc.
“Consolidation continues to benefit agents, intermediaries and brands by driving innovation while reducing costs and lowering barriers to entry,” Griffin said. “Integration will also improve efficiency by allowing agents to work within products, services, and technologies that can communicate with each other.”
Conroy said the industry is focusing on big data, blockchain and drones, as well as the Internet of Things (IoT) this year. But when it comes to emerging technologies, Conroy stressed there are two things he should focus on: 5G and artificial intelligence.
“Artificial intelligence has the potential to make agents more productive and close more deals, and 5G has the potential to change the way people choose where and how to live.” said.
AI is already being used across the industry to do the heavy lifting behind the scenes in critical real estate processes, such as property valuations, contact management, and renovation estimates. But Conroy says there is room for further growth in this area.
“AI outperforms other technologies by a factor of 10,” he said. “Over the next two to three years, we’ll be delving into machine learning, predictive analytics, and computer vision.”
Conroy said technology platforms that use AI to identify consumers who are barely ready for a mortgage or homeownership are at the forefront of innovation. And when these technologies are combined with his 5G speeds, the possibilities are endless and can help bridge the technology gap in rural areas where coverage is currently low or non-existent.
Liz Dominguez is a senior online editor at RISMedia.Email her your real estate news ideas lizd@rismedia.com.
