Irrespective of the many challenges the country faced in 2020, the housing market stayed as one of the economy’s strongest elements. But now that 2020 is done, what do the experts presume 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 rational for Santa Clara rental property investors to question what kind of housing market they may encounter in the months and years to come. While no one can say for certain, a couple of signs can help us figure out what we to anticipate from the 2021 housing market.
Rising Home Prices
Most housing industry experts admit that home prices will continue to rise through 2021. Strong demand and low inventory levels continue to drive prices up in numerous markets around the country, and while some typically strong markets lagged in 2020, experts predict that these markets will rebound in 2021. In spite of that, investors might need to look out for new emerging markets as laborers are no longer tethered to a specific location by on-site jobs that are retreating from urban centers.
Builders Struggle to Keep Up
With a larger number of buyers than homes for sale, and due in part to pandemic shutdowns in 2020, builders in many markets have strived to sustain the demand for new homes. Few experts expect that trend to continue through 2021, despite hopes that things will be all right after the year ends.
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 have been heading away from cities on the way to smaller towns and suburban areas for months, which is anticipated to continue. Investors may find new opportunities in previously slow or declining markets due to 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 generation has already contributed to the strong demand for affordable starter homes, further reducing available supply and driving up home prices nationwide. Since they struggle for a new home, these would-be buyers will likely turn to rent or find creative solutions to home shortages in their preferred areas. This could help investors find rentersfor properties at higher rates even more before.
It’s (Still) a Seller’s Market
As home prices rise and listing lags behind demand, experts predict that 2021 will continue to be a seller’s market, at least until the fall. The average time a home spent listed for sale has declined dramatically in numerous markets, for certain zones seeing average listing times of days, not weeks. While some industry experts figure things will ease slightly after the end of summer, generally, buyers looking for bargain properties are probably going to have heaps of competition all year.
After evaluating the 2021 housing market, are you looking to add new Santa Clara investment properties to your portfolio this year – or perhaps sell some before prices fall? Real Property Management Southern Utah can help! We associate with rental property investors in Santa Clara and the surrounding areas to facilitate off-market deals you won’t find anywhere else. Without regard to your investing goals 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!
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