Despite the many challenges the country faced in 2020, the housing market remained one of the economy’s strongest elements. But now that 2020 is over, what do the experts see ahead for the 2021 housing market? Due to the continuing record-low mortgage rates and major shifts in rising markets due to increased levels of remote work, it’s normal for Bannock County rental property investors to ask what kind of housing market they may encounter in the months and years to come. Even though no one can tell for sure, there are a few measures that can determine what we may expect from the 2021 housing market.
Rising Home Prices
Most housing industry experts think that home prices will begin to rise through 2021. Strong demand and low inventory levels constantly drive prices up in many markets all over the country, and while some normally strong markets lagged in 2020, experts predict that these markets will rebound in 2021. Still, investors may want to watch out for new emerging markets since people are no longer tethered to a specific location by on-site jobs and are leaving 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 many markets find it difficult to sustain the demand for new homes. Lots of experts expect that trend to continue through 2021, but they are hoping that everything will get back on track toward the year’s end.
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 trending away from cities and toward smaller towns and suburban areas for months, which is likely to continue. Investors may find new opportunities in recently slow or declining markets because of the sudden influx of people hunting 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 now contributed to the strong demand for affordable starter homes, further reducing available supply and driving up home prices nationwide. Since they look for a new home, these would-be buyers are willing to turn to rent or opt for creative solutions to home shortages in their preferred areas. This may help investors find renters for properties at higher rates than it has ever been.
It’s (Still) a Seller’s Market
As home prices rise and listing lags behind demand, experts predict that 2021 will remain a seller’s market, at least until the fall. The average time a home spent listed for sale has declined dramatically in many markets, with some areas seeing average listing times of days, not weeks. While some industry experts assume 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 Bannock County investment properties to your portfolio this year – or perhaps sell some before prices fall? Real Property Management Pocatello can help! We engage with rental property investors in Bannock County and the surrounding areas to facilitate off-market deals you won’t find anywhere else. No matter what 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!
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