When the Great Recession struck, many experts and analysts began to count out the commercial and residential real estate markets – and for good reason. These industries were among the hardest hit by the economy downturn, but if the United States has proven nothing else in its nearly 240 years of existence, it is that this nation loves a comeback. Like Rudy or the Little Engine That Could, America’s residential and commercial real estate markets have pulled themselves out of the hole and are now showing new signs of life.
Growth in these markets, especially at the accelerating pace seen today, means property managers must prepare themselves for more activity and changes in the trends in property development.
Some property managers are still using the old pad-and-paper approach to accounting, record-keeping, planning and oversight at large, rather than leaning on some of the more advanced tools that are now available. This can be a huge mistake, as property management software can quickly reduce the frequency of inaccuracies while bolstering efficiency and productivity from the smallest levels and up to the top.
Supply and demand
The most recent available data from the U.S. Department of Housing and Urban Development indicated new development projects spiked significantly in the fourth quarter of 2013, while it has since balanced off in the first quarter of 2014. One of the clearest indications the housing sector is returning to a state of normalcy is that 5.6 million homeowners were found to have effectively swam above water following the crisis’ worst years, including 2012.
This, combined with the finding that delinquency and foreclosure rates have continued on a downward path since halfway through 2010, further hint at continued growth in the new project development market. As more homes are filled and consumers attain more comfortable financial positions, commercial and residential property development will begin to spike once again, and it has already started to show life over the past year.
According to HUD, multi-family home purchases and values have grown significantly, already reaching levels similar to those recorded long before the recession struck.
All in all, while certain areas were down on a quarterly and annual basis, the commercial and residential markets are picking up steam when looking at the past two years combined, with contractions being largely overshadowed by general growth.
What does this mean?
Property managers must remember commercial and residential real estate are very fast-moving markets and, if the past decade has proven nothing else, demand competitors stay on top of the trends.
The accounting traditions of old will not likely pan out so well today or in the near future, and it is time for relevant professionals to recognize that they must get with the times.
As for technologies that can help these professionals reach and exceed goals by way of efficiency, organization, accuracy and more, SKYLINE property management software is as good as it gets. Additionally, by using Anton Systems as an IT service management provider for the SKYLINE software, property managers can improve property performance, increase returns to investors and, most importantly, make all of their tenants happy in real-time.