Regardless of the many challenges the country faced in 2020, the housing market continues to be one of the economy’s strongest elements. However, now that 2020 is finished, what do the experts anticipate for the 2021 housing market? Given the continuing record-low mortgage rates and major shifts in rising markets due to increased levels of remote work, it’s typical for Cornish rental property investors to think about what kind of housing market they may encounter in the months and years to come. While no one can foresee, a few signs show what we might expect from the 2021 housing market.
Rising Home Prices
Most housing industry experts have faith that home prices will continue to rise through 2021. Strong demand and low inventory levels start to drive prices up in several markets across the country, and while other typically strong markets lagged in 2020, experts predict that these markets will rebound in 2021. Regardless of that, investors may choose to keep an eye out on new emerging markets since laborers are no longer tethered to a specific location by on-site jobs, which are relocating away from urban centers.
Builders Struggle to Keep Up
With increasing buyers compared to homes for sale, and due in part to pandemic shutdowns in 2020, builders in several markets have struggled to balance the demand for new homes. Most experts expect that trend to continue through 2021, in the midst of assumptions that things will start getting better before the year’s over.
High Rate of Relocations
One of the big surprises of 2020 was how remote work prompted so many people to seize the opportunity to buy new homes at a distance from their jobs. Recent home sales are now moving away from cities and toward smaller towns and suburban areas, which is expected to continue. Investors may find new opportunities in previously slow or declining markets triggered by the sudden influx of people looking 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 massive generation has already contributed to the strong demand for affordable starter homes, further reducing available supply and driving up home prices nationwide. As they look for for a new home, these would-be buyers will possibly turn to rent or find creative solutions to home shortages in their preferred areas. This may help investors find renters for properties at higher rates than ever previously.
It’s (Still) a Seller’s Market
Since home prices rise and listing lags behind demand, experts predict that 2021 will keep on being a seller’s market, at least until the fall. The average time a home spent listed for sale has declined dramatically in other markets, with some places seeing average listing times of days, not weeks. Even though some industry experts expect that everything will ease slightly when this season is finished, overall, buyers looking for bargain properties will probably have competition all year.
After evaluating the 2021 housing market, are you looking to add new Cornish investment properties to your portfolio this year – or perhaps sell some before prices fall? Real Property Management Beacon can help! We work together with rental property investors in Cornish and the surrounding areas to facilitate off-market deals you won’t find anywhere else. Whatever your investing goals are this year, we have the tools and expertise you need to maximize each of your rental homes’ earning potential. Contact us today for more information!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
