Notwithstanding the many challenges the country faced in 2020, the housing market has been one of the economy’s strongest elements. But now that 2020 is over, what do the experts see ahead for the 2021 housing market? By reason of the continuing record-low mortgage rates and major shifts in rising markets due to increased levels of remote work, it’s sensible for Round Mountains rental property investors to wonder what kind of housing market they may encounter in the months and years to come. While no one can anticipate what will happen soon, some indicators may show what can be assumed from the 2021 housing market.
Rising Home Prices
Most housing industry experts have the same opinion that home prices will continue to rise through 2021. Strong demand and low inventory levels continue to drive prices up in several markets throughout the country, and while some normally strong markets lagged in 2020, experts predict that these markets will rebound in 2021. However, investors may want to pay attention to new emerging markets as the labor force is no longer tethered to a specific location since on-site jobs are moving away from urban centers.
Builders Struggle to Keep Up
With more buyers than homes for sale, and due in part to pandemic shutdowns in 2020, builders in numerous markets have struggled to meet the demand for new homes. A lot of experts expect that trend to continue through 2021, despite hopes that things will get back to business before the year’s over.
High Rate of Relocations
One of the big surprises of 2020 was how remote work prompted many people to seize the opportunity to buy new homes at a distance from their jobs. Recent home sales are now heading away from cities and toward smaller towns and suburban areas for months, which is expected to continue. Investors may find new opportunities in recently slow or declining markets due to the sudden influx of people searching for more room or wide-open spaces.
A New Generation of Homeowners
Millennials are starting to turn 30 this year, typically when homeownership levels begin to increase significantly. This increasing generation has already contributed to the strong demand for affordable starter homes, further reducing available supply and driving up home prices nationwide. Since they are looking for a new home, these would-be buyers will likely turn to rent or try creative solutions to home shortages in their preferred areas. This may help investors find renters for properties at higher rates than ever before.
It’s (Still) a Seller’s Market
As home prices rise and listings lag behind demand, experts predict that 2021 will continue to remain a seller’s market, at least after summer. The average time a home spent listed for sale has declined dramatically in several markets, with some locations seeing average listing times of days, not weeks. While some industry experts believe that things will ease slightly after the summer is done, mainly, buyers looking for bargain properties will have a lot of competition all year.
After evaluating the 2021 housing market, are you looking to add new Round Mountains investment properties to your portfolio this year – or perhaps sell some before prices fall? Real Property Management Highland can help! We cooperate with rental property investors in Round Mountains and the surrounding areas to facilitate off-market deals you won’t find anywhere else. Irrespective of what your investing goals are today, we have the tools and expertise you desire to maximize each of your rental homes’ earning potential. Contact us today for more information!
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