The Evolution of Real Estate: From Traditional to Modern Methods
History of Real Estate
Humanity has come a long way in millions of years, from a hunter-gatherer lifestyle to an agrarian society. When settlement arose, the birth of homeownership and real estate sprouted from it too. People eventually settled down from being a nomad and wandering to different lands to mark their abode, set up private property, and claim land ownership.
Another massive wave of change occurred during the Industrial Revolution, when more people were divided into class and other social categories. At this time, banks made mortgage loans much more accessible and paved the way for more homeowners and landlords. Finally, in the late 19th century, real estate began to take form, and the National Association of Realtors was established. Land ownership became the root of investment opportunities and grew into more trade-offs.
In 1919, real estate brokers required professional licensing. However, from the 1930s to the 1980s, the real estate industry rapidly grew, and agents began to take on multiple listings, open homes for personal marketing tools, use contracts to market other listings, and open up options for the buyer. At this time, incentives were initiated to attract potential buyers.
Shift to Modern Real Estate Today
The last 10-12 years have been the most consequential time in the history of American Real Estate; there have been a significant number of foreclosures, careful buyers, and fierce competition. All these factors are apparent in real estate in Lee County in recent years too.
Over the last few years, the loan process has become more transparent. For example, after the housing crash, the Consumer Financial Protection Bureau enacted the “Know Before You Owe” mortgage disclosure rule, creating accessible forms to ease the process.
In regards to mortgage interest rates, there have been significant changes too. For example, once a 30-year fixed rate on average with a fixed loan between 5.04-8.05 percent dropped below 6 percent and has not risen since the 2008 housing crash.
Lastly, everything is all done digitally now— from searching to closing a property; there are digital alternatives that make it convenient, standardized, and efficient to get the process done online. To find all the best places to invest in real estate in Florida, check out the options with a trusted realtor to see the recent listings.
Mind-Blowing Real Estate Facts in Florida
- 50% of buyers find their homes online
- The median rent price in Florida is $1,800
- The median home value in Florida is $235,500
- 9% of Americans own a home in 2020
- Orlando, FL is the number one US location for real estate investments in 2019
If you want to make the best decision for real estate in Southwest Florida, keep up with the real estate advancements. See how the times have changed in the real estate market and consider the flow of real estate today.