It has been a year of highs and lows in residential real estate, but those who build, buy and sell homes are expecting brighter days in 2018, despite low inventory and uncertainty about tax reform. The forecast from the National Association of Realtors (NAR) points to a 3.7 percent rise in existing home sales and a 13.9 percent increase in new single-family home sales for the upcoming year.

“Positive momentum across financial, real estate and mortgage markets is fueling confidence heading into 2018, and there’s good reason to continue that restrained optimism for the year ahead,” said Tom Rydberg, senior vice president of residential lending at Draper and Kramer Mortgage Corp. “Though housing affordability will be an ongoing challenge, the steady bull run in stocks and increasing wages will help sustain the strong housing market. Lenders will continue to loosen credit and debt-to-income requirements as overall loan volume slows a bit in 2018.”

Heading into the new year, here are some of the trends that will impact residential real estate in 2018, according to some of the industry’s leading Midwest experts. (Note: Scroll down for full write-ups. Click HERE for photos.)

1. Brokers Beat Bots For Business
2. Insta-Living
3. Going To The Dark Side
4. Metal Mixology
5. Buyers Become Big Fish In Hacker Pond
6. Generation Everyone

1) Brokers Beat Bots For Business: Despite the rise of AI and threats that robots will replace many jobs, the human touch that only real estate agents can provide remains a critical component of any home sale. In fact, 89 percent of sellers worked with a real estate agent or broker to sell a home in 2017, and only 8 percent of sales were for sale by owner, according to NAR. Increasingly, agents who are early adopters of emerging technologies are seeing how new tools and resources can supplement tried-and-true approaches. This has helped them earn the trust of buyers and sellers who often come into the relationship with a plethora of data – everything from school rankings to comps – stemming from their own online searches.

“The role of the sales agent has evolved into an interpreter of sorts,” explained David Rice, founder and CEO of New Home Star, which is the largest private seller of new homes in the U.S. “A consumer can get a basic understanding of the home, neighborhood, new-construction process and even general philosophy of a builder online. However, the details of construction materials and best practices used in the construction of their new home – not to mention their story for why they want a new home – are best understood during face-to-face meetings, which makes our value clear.”

In the digital age, it’s also critical for residential brokerage firms to develop and maintain a strong online presence, both through their website and relevant social media platforms, according to Patrick Ryan, senior vice president and managing broker of Chicago-based residential brokerage Related Realty.

“Every brokerage should have its website optimized for easy use across mobile devices, along with a dynamic presence across social media channels like Facebook, Twitter and Instagram,” said Ryan. “Buyers shop online first, so brokers should utilize engaging videos, eye-catching photos, educational graphics, and qualitative insights into emerging trends and niche markets to establish a connection with prospective clients early on in their home search.”

2) Insta-Living: From fully finished interiors to no-maintenance exteriors, buyers will continue to be wooed by homes that allow them to move in, get settled and live life without the hassles of customizing a closet or digging into yardwork.

Infill builder Barnett Homes, which specializes in luxury new-construction single-family homes and rehabs throughout Chicagoland, says buyers want a turnkey home with finishing touches already finished. “In the past, we might have left extras for the buyer to handle after the closing, but today’s buyers want us to deal with them,” said Ken Fixler, president of Barnett Homes. “If the home has the potential for a roof deck, we’ll go ahead and build it, or we’ll outfit closets with customized shelving. Buyers prefer to move in and not worry about any last to-dos.”

Buyers are also looking for easy living in the way of low-maintenance homes. “The appeal of maintenance-free communities has really expanded to virtually every buyer demographic, from busy professionals and young families to empty nesters and retirees,” said Brian Hoffman with Red Seal Homes, which offers homes with no yard maintenance in two suburban communities north of Chicago. “People simply lead busier lives. With the demands of work, kids’ activities and personal hobbies, they want a worry-free home where they don’t have to spend time scheduling or undertaking lawn care or snow removal.”

The allure of downtown living continues to draw well-heeled buyers to luxury residences like those at Renelle on the River, an 18-story condominium building under construction along the Chicago River in the city’s River North neighborhood. “Buyers love that the minute they move in, they have access to all the wonderful amenities Renelle offers, whether it’s the rooftop lounge with a full kitchen, the screening room or private yoga studio,” said Liz Brooks, vice president of sales and marketing at Chicago-based Belgravia Group, the developer behind Renelle on the River. “They don’t have to wait to unpack boxes before they entertain guests because they have these lovely common spaces with fabulous views that are ready for them to enjoy immediately.”

3) Going To The Dark Side: Dark may be daring, but it also is desirable for buyers, builders and designers in 2018. The bold black colors of the year from Olympic Paint (Black Magic), Glidden (Deep Onyx) and PPG (Black Flame) point to the luxe appeal of this hue.

One way to add subtle drama to a home’s exterior is to forego tired tan and beige siding in favor of darker shades, said Jeff Benach, principal of Lexington Homes, a Chicago-area homebuilder for more than 40 years. Single-family home communities like Lexington Towne in Arlington Heights offer siding in various shades of dark blue, as well as dark and medium tones of gray, such as natural slate. “After experiencing how popular these darker options are at our single-family communities, we are now designing many of our new suburban rowhome and townhome communities with these exterior shades for a more modern look,” he said. “We also are seeing buyers wanting to enhance the dark siding on the single-family homes with mixed materials like stone, brick and cedar for a textured look.”

According to architecture and interior design firm Morgante Wilson Architects, dark hues are also in vogue in home interiors, with some buyers choosing dark or black trim. “We do such detailed design with the interior architecture that outlining the room or windows in dark trim helps punctuate and call attention to those unique features,” said Elissa Morgante, co-principal of Evanston-based Morgante Wilson. “We’ve also been going all-in with dark tones for walls and window treatments. Dipping a room in a dramatic shade like midnight navy, eggplant or charcoal is a fun way to embrace a deep, rich color, and the result is deliciously inviting.”

4) Metal Mixology: All that glitters is gold – and bronze and chrome and copper. Pairing different metal finishes and fixtures used to be a risky prospect few buyers and homeowners embraced. However, heading into 2018, interior designers and homebuilders are seeing a rise in mixed-metal appeal, sometimes in combination with unexpected stone and metal pairings.

Elissa Morgante of Morgante Wilson Architects noted that her firm’s clients are becoming more open to mixing metals throughout the home. “Brushed brass and copper are quite popular right now, and our clients especially love the warmth these tones bring to a space,” she said. “Layering a variety of metal finishes also adds depth and is a great way to keep interiors fresh, whether the materials are incorporated through accessories or more permanent hardware elements.”

Ken Fixler of Barnett Homes is also seeing a heavy use of mixed-metal finishes – from polished nickel with aged iron accents to black with gold accents – and in a variety of places, including faucets, hardware, lighting and even furniture. “Especially in the downtown Chicago market, buyers really love to see modern, eclectic choices such as a hammered copper light fixture above the kitchen island paired with sleek chrome faucets and cabinet hardware,” he said. “That trend is also influencing how we stage our completed homes with accent pieces such as metal counter stools, chair rivets and mirror trim.”

Mixing different metal finishes is also popular with buyers of luxury Chicago condominiums developed by Belgravia Group. However, to warm up the industrial look of some metals, buyers are looking to pair them with a natural stone like marble or limestone. “For example, in bathrooms, where buyers might choose a matte black sink faucet, which falls more on the cool spectrum, they offset that with countertops fashioned in polished Italian Calacatta stone with warm gray, brown and gold veining or a Brazilian Dolomite material with its grayish hue and soft, dark veining as complementary design elements,” said Amanda Mason, senior design director at Belgravia Group.

5) Buyers Become Big Phish in Hacker Pond: Attorneys, agents and title companies, in particular, have become prime targets for hackers, as email spoofing and malware have become more sophisticated. According to a published report citing FBI data, in fiscal year 2017, the amount of money diverted or attempted to be diverted to “criminally controlled” accounts in real estate transactions was $969 million. In 2016, comparable wire transfer frauds amounted to just $19 million.

“Fraudulent wire transfer scams coupled with the hacking of a major credit card bureau has left buyers needing reassurance their information is safe,” said David Rice, founder and CEO of New Home Star. “The frequency of these situations requires us to educate buyers on how we keep their information safe and what red flags they should be aware of that may indicate their security has been compromised.”

One of the most common types of cyber fraud involves a hacker taking over an email account from an agent or an attorney, or creating one that is nearly identical, and then emailing changes to wire instructions that direct funds to the wrong account. Because the email address matches or looks very similar to the address of their broker or attorney, buyers believe it is a legitimate request.

“Buyers, real estate brokers and lawyers represent large sums of money to a hacker because of their roles in real estate transactions,” said David Garside, executive vice president of title and escrow operations at Chicago-based Proper Title, LLC. “The title insurance industry is seeing more instances where buyers fall victim to this kind of fraud because they didn’t stop to verify seemingly harmless requests – particularly those that involve a transfer of money.”

Proper Title has established a number of precautions to protect customers from cyber fraud, including asking that customers verify all instructions by phone before proceeding with money transfers. The company also hosts live hacking events to educate clients on ways they are vulnerable to hackers and how they can keep their information secure.

6) Generation Everyone: Even though the economy is back on track and millennial buyers are finally entering the housing market, it looks like multigenerational living is here to stay. Not since the 1950s have so many families chosen to live with multiple adult generations under one roof, according to Pew Research, challenging designers and builders to maximize efficiency without compromising style.

“Homebuilders are learning quickly that privacy and accessibility are two must-haves for multigenerational living,” said Mary Cook, founder of commercial interior design firm Mary Cook Associates. “Designing both upper and lower levels with master bedroom suites allows a home to be adaptable for returning children, grandparents, guests or roommates. Also critical are private ‘getaway’ areas, such as sitting rooms or work spaces in bedrooms. With plenty of spaces available for family and alone time, it’s easier to merge lifestyles, work and entertainment schedules, allowing generations to live successfully together.”  

Whether it is an adult child moving back home after college or elderly parents coming for extended or permanent stays, Lexington Homes is seeing demand for multigenerational living options at its townhome and single-family home communities. The builder has found the finished lower-level flex space in its urban rowhomes, such as those at Lexington Square in Chicago’s Bridgeport neighborhood, to be especially popular among multigenerational buyers, as floor plans offer the option of upgrading the space to a private guest suite.

Single-family communities like Lexington Towne in Arlington Heights, Ill., offer homes with up to six bedrooms – ideal for family members planning long summer or holiday visits. In addition, some plans offer two sets of Jack-and-Jill baths or a secondary bedroom with an en-suite bath, providing more options for access and privacy. “We typically see this as popular with buyers whose parents may live in another country, in which case they might stay for weeks or months, not just a long weekend,” said Jeff Benach, principal of Lexington Homes.