AI and the Housing Market: How To Use AI To Find the Best Time To Buy a Home in 2023
Approximately 12% of people are planning to buy a house this year — which admittedly isn’t a lot — according to a recent GOBankingRates survey. One of the leading causes holding 27.19% of potential buyers back is an inability to find a house they like in their price range.
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If this sounds familiar, you don’t have to just sit idly and wonder when you’ll finally find a new home. The savviest buyers are using artificial intelligence to determine everything from the best time to buy a property to actually finding their dream home.
GOBankingRates asked several real estate agents how both they and their clients are currently using AI. Here’s what they had to say.
Find Your Dream Home Fast
An exciting new trend, AI integration is significantly transforming the way Ryan Fitzgerald, a realtor and the owner of Homes Raleigh, based in Raleigh, North Carolina, conducts business.
“It was not too long ago when I was helping a client, let’s call him John, looking for a specific type of property in Raleigh,” he said. “With the help of AI algorithms, we were able to analyze vast amounts of public data, including property values, debt levels and homeowner information in a blink.”
He said this allowed him to find the perfect property for John in record time, which left his client in awe.
He said AI is also a game-changer for realtors.
“For example, it helps us identify homes that are most likely to be listed for sale,” he said. “By examining data such as past sales, owner occupancy and local market trends, we can better strategize our approach.”
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Using AI To Search for Specifics
For a property to truly be a dream home, it needs to check all — or at least most — of your boxes. John Gluch, a real estate agent and owner of Gluch Group, based in Scottsdale, Arizona, said AI can help make your search easier than ever.
“AI can also help provide personalized recommendations by looking at individual preferences, budget and requirements,” he said. “Inputting parameters such as desired location, property features, budget and preferred timeline, AI can recommend ideal times to purchase a home based on market conditions.”
Streamlining With AI
Nicholas McMillan, founder and owner of Hire Realty LLC, a New York-based real estate agency specializing in residential and commercial sales and investments, said this targeted approach also increased real estate agents’ chances of attracting and retaining customers.
“Automating tasks through AI saves time and allows real estate agents to focus on building relationships,” he said. “This personalized marketing can help buyers navigate the market and find the most suitable homes at the right time.”
Gauge the Market
“For homebuyers, AI enables precise property evaluations and personalized searches,” Fitzgerald said. “It’s like having a personal real estate assistant working for you round the clock.” He said these immediate market alerts allow potential buyers to always be the first to know when properties that meet their criteria become available.
“On that note, Zillow deserves a mention,” he said. “Their use of neural networks in home price estimation algorithms has not only given homeowners more accurate estimates, but it has also dramatically expanded its cash-offer homebuying business.”
McMillan also noted the importance of AI algorithms to Zillow, as well as Redfin and Realtor.com, saying they’re used to analyze real estate data, identify market trends and forecast future trends.
“This information helps buyers make data-driven decisions on timing their home purchase, considering factors such as market fluctuations and demand-supply dynamics,” he said. “By leveraging AI’s predictive capabilities, individuals can gain valuable insights and maximize their investment potential when buying a home.”
Analyzing the Market
Gluch said you can also use AI to monitor other information that may impact home prices.
“AI has the ability to analyze large volumes of real estate data, including sales data, pricing trends and market indicators,” he said. “AI can help people identify patterns and insights regarding the housing market, which can signal the best time to purchase a home.”
That’s not all — he said AI can also dig deeper to help you buy a home with even more confidence.
“AI can also look at factors like seasonality and economic conditions, which can help provide forecasts on whether housing prices are likely to rise or fall in the near future,” he said.
Takeaway
Clearly, AI has already made a huge impact on the home-buying process. In fact, you might not even realize how much it is currently impacting your search.
Buying a home is one of the biggest decisions you’ll ever make. Hopefully these insights have opened your eyes to new ways AI can be used to help you determine both the best time to buy a home this year and how to find the home of your dreams.
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This article originally appeared on GOBankingRates.com: AI and the Housing Market: How To Use AI To Find the Best Time To Buy a Home in 2023
