With the worldwide market size of $280.6 trillion and around $9.6 billion in technology investments, the real estate industry has become one of the biggest ones in the world.
One of the significant reasons for this growth is rapid urbanization and increasing population.
Real estate is one of the volatile markets in US, but still plays an integral role in the US economy. With many of the Americans wishing to own a perfect place to live in, which comes at a hefty price, the real estate prices are shooting up like crazy. Some of the states which have seen a sharp increase in the prices are California, Hawaii, New York, Massachusetts, Oregon, Alaska, Rhode Island, and Connecticut.
Find the below information for a better idea:
The average home price in Seattle is about $800,000 more than twice the national average.
A 950-sq-ft two-bedroom apartment will run you about $3,000 a month in Boston.
The National Association of Realtors has also predicted that the national median existing home price could rise to around $266,800, which is almost a growth of 3.1% from the year 2018, and in 2020, there will be a rise of $274,000 in the median home price.
The upcoming Hudson Yards redevelopment project in New York City will be catalyzing some of the major expansions by 2020. The first of the two phases of this project has been already opened in 2019. It will contribute to around $19 billion annually to the GDP of New York City, generating more than $500 million of the tax revenue.
How an odd combination of AI and real estate will be helpful?
As almost every industry is betting on artificial intelligence, the real estate industry is also not left behind. Most of the people who were skeptical about this combination have started seeing positive results.
Check the video below of some C-level executives about the impact of AI on real estate:
AI is revamping the entire process, the way the real estate industry works!!!!!!
It is not only changing the decision-making process of an organization, but also improving the efficiency of the tasks.
How AI is changing real estate in 7 different ways
1. Predicting property market values:
AI is helping the real estate agents for predicting the future value of the property in the target market. The AI technology makes it possible by combining the marketplace data and CRM. It helps to link information from various sources, including transportation, crime, schools, and marketplace activity.
Skyline AI, the real estate investment technology company which has its headquarters in New York has been working on the AI platform for real estate; it can accurately predict the future rent, and identify the market trends for understanding business opportunities.
2. AI helping to provide better recommendations:
Agents communicating with the clients in the real estate industry often face a challenge in understanding their customers. This creates a problem as without that, they cannot suggest the best property options to their customers.
Agents can follow a process by converting every learning from communication with their client into data further to be used by AI. They can then provide better recommendations, thus resulting in a win-win scenario for both parties.
3. AI for the property sellers:
AI is helping the property sellers in minimizing the dependency on the real-estate agents. It has been a trend for many years, whenever a property owner wants to sell a property, many of them would rely on the real-estate agents, who earn the commission from both the sellers and buyers.
AI is helping property sellers to earn more, by removing the dependency on the middle agents.
4. Improving the buying process:
Purchasing a house can be a tedious process for anybody, but gradually machine learning and AI is changing the way it works. It is refining the buying process to a great extent.
JetClosing, one of the companies applying machine learning for a faster, user-friendly, and transparent real estate experience for the seller, buyer, and the agent is one of the real-time examples where AI is being successfully used. The company has successfully removed the paper forms and brought everything to the cloud.
5. Mortgage calculations:
Mortgage calculations is one of the tricky and complex matter. With the help of AI, real estate agents can complete the process easily and efficiently. The smart algorithms review the mortgage applications and remove the errors from it. It can also check various income sources and analyze the key documents.
CoreLogic is an AI-powered platform that provides brokers and the real estate agents a tool for checking the documents