Proptech: How the tech boom changed Real Estate

It starts pretty simple enough, “proptech” is simply combining the words property and technology. What’s less simple is trying to figure out if there are any limits to what it can do, both for agents and clients alike.

Here are some numbers. There’s a pretty good chance a potential client already started their housing search online long before they get an agent. Zillow alone went from roughly 150 million monthly users in 2017 to 250 million in 2021. According to the NAR, in 2020, 97% of homebuyers used the internet in their home search either before of after finding an agent. With social distancing and health guidelines coming from the COVID-19 pandemic, technology has played an even larger role in the buying and selling of homes.

A few more facts from Forbes:

• By 2025, the Real estate software market is projected to reach $12.89 billion
• Industry experts state that 53% of real estate companies are now making tech investments
• 85% of residential companies use multiple listings software
• 90% of real estate businesses have a web application

Even though a hotter 2021 market has absolutely cooled off, we’re seeing no signs of technology usage slowing down. We consider ourselves part of the benefits of technology growth, especially in support of the agent side. As transactions are getting faster, we built Tongo to take advantage of that. How are agents putting technology to work? A few more compelling statistics from the NAR. The software tools most often provided or encouraged by firms are e-signature (83%), comparative market analysis (82%), electronic contracts/forms (80%), and multiple listing (79%).

What does this all mean for us? Even with interest rates slowing the market down, technology that drives pre-set alerts for new listings in a desirable neighborhood creates a new awareness and urgency for buyers, and while higher rates do reduce purchasing power for some, the lack of supply is still helping sellers get solid prices. Meaning, of course, there’s never been a better time for Tongo. The empowerment of getting commissions whenever they are needed leads to stabilizing cash flows and paying yourself on demand. That means easier budgeting for opportunities to invest in your business, manage personal spend, and contribute to savings.

As interest rates climb and talk of a slowdown in the housing market potentially means more time between deals closing, we're made for this. Whether the time is now, or it just makes sense to sign up for a future cash distribution, we’re really happy to support the Real Estate entrepreneurs.

Call us a little biased because we’re focused on Fintech, but we’re excited for the Proptech future.

As always, we’re here to help when we can.

Yours in Technology.
The Tongo Team