Irrespective of the many challenges the country faced in 2020, the housing market remained one of the economy’s strongest elements. But now that 2020 is behind us, what do the experts foresee waiting for the 2021 housing market? With the continuing record-low mortgage rates and major shifts in rising markets due to increased levels of remote work, it’s reasonable for Buhl rental property investors to speculate what form of housing market they may encounter in the months and years to come. While no one can predict for certain, there are some indicators that can show what we might assume from the 2021 housing market.
Rising Home Prices
Most housing industry experts recognize that home prices will start to rise through 2021. Strong demand and low inventory levels continue to drive prices up in multiple markets throughout the country, and while some usually strong markets lagged in 2020, experts predict that these markets will rebound in 2021. However, investors may want to keep an eye out for new emerging markets as workers are no longer tethered to a specific location by on-site jobs and 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 several markets have struggled to manage the demand for new homes. Many experts expect that trend to continue through 2021, although they hoped that things would return to normal by the end of the year.
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 approaching smaller towns and suburban areas for months, which is expected to continue. Investors may find new opportunities in earlier slow or declining markets due to the sudden influx of people watching 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 growing generation has already contributed to the strong demand for affordable starter homes, further reducing available supply and driving up home prices nationwide. Since they hunt for a new home, these would-be buyers will likely turn to rent or pursue 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
Because home prices rise and listing lags behind demand, experts predict that 2021 will keep going to be a seller’s market, at least until the fall. The average time a home spent listed for sale has declined dramatically in several markets, with some places seeing average listing times of days, not weeks. Although some industry experts agree that things will ease slightly after the summer is over, for the most part, buyers looking for bargain properties are likely to have lots of competition all year.
After evaluating the 2021 housing market, are you looking to add new Buhl investment properties to your portfolio this year – or perhaps sell some before prices fall? Real Property Management Magic Valley can help! We collaborate with rental property investors in Buhl and the surrounding areas to facilitate off-market deals you won’t find anywhere else. Irrespective of what your investing goals are nowadays, 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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