At RWA Nationals, I was fortunate enough to listen to a panel of agents tell exactly what they're looking for right now. It was interesting to hear what's hot and what's not. Also, I couldn't help but get the scoop from other writers. Whether they learned something from an agent pitch or their published friend, they shared the latest info.
Paranormal is still really huge. Almost every agent wants paranormal. However, I'm going to hone in on the bits and pieces I gleaned from them. (This is only my opinion based on the comments I listened to in workshops.) There's an oversaturation of writers emulating the Twilight series. Agents are getting bombarded with vampire stories, but many of the books aren't original. So yes, keep sending paranormals, but try to set yourself apart with a truly unique idea, and maybe stay away from vampires for a while.
Next wave of the future? STEAM PUNK. I heard this term over and over from agents. They see the next hot trend as steam punk aimed at young adults. Think historical settings with steam-powered modern technology. If you're confused about this, rent Wild Wild West.
Also, post-apocalyptic thrillers, like Cloverfield, seemed to excite a few agents.
For all you inspirational writers out there: do your agent research. Four out of six agents on a panel I listened to specifically said they DO NOT WANT INSPIRATIONAL. It seems to be a hot-button genre. Either the agents want it or they don't. And many agents don't. So please, verify what genres the agent represents before you query. Why waste your time and theirs?
Historical is still hot. Chick-lit is not. If you're writing contemporary romance, you need to have a high concept or "upmarket women's contemporary fiction" to get someone to take a chance on you right now. Upmarket women's fiction is a more literary story. Think Jodi Picoult, not Sophie Kinsella. (Although both are tremendous writers!)
As always, every agent is looking for an extremely well-written book. So don't be afraid to take a chance with a lukewarm genre if your writing is phenomenal. They want fresh ideas and great writing.
If you have any questions about this topic, please ask. I don't know all the answers, but I'll be happy to share anything I learned.
Happy Writing!