After all of the many challenges the country faced in 2020, the housing market is still one of the economy’s strongest elements. However, now that 2020 is behind us, what do the experts expect for the 2021 housing market? Because of the continuing record-low mortgage rates and major shifts in rising markets due to increased levels of remote work, it’s common for San Antonio rental property investors to speculate what form of housing market they may encounter in the months and years to come. Even though nobody can predict the future, a couple of indicators can determine what we may look forward to from the 2021 housing market.
Rising Home Prices
Most housing industry experts think that home prices will continue to rise through 2021. Strong demand and low inventory levels will keep on drive prices up in many markets everywhere in the country, and while some typically strong markets lagged in 2020, experts predict that these markets will rebound in 2021. Still, investors might choose to keep an eye out for new emerging markets as workers are no longer tethered to a specific location by on-site jobs that are withdrawing 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 various markets have struggled to keep up the demand for new homes. Few experts expect that trend to continue through 2021, in spite of expectations that everything will go back to normal again by the end of this 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 have been going away from cities to smaller towns and suburban areas for months, which is expected to continue. Investors may find new opportunities in previously slow or declining markets due to 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 huge generation has already contributed to the strong demand for affordable starter homes, further reducing available supply and driving up home prices nationwide. Since they strive for a new home, these would-be buyers are more likely to turn to rent or discover creative solutions to home shortages in their preferred areas. This could help investors find renters for 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 very much a seller’s market, at least until the fall. The average time a home spent listed for sale has declined dramatically in various markets, with some areas seeing average listing times of days, not weeks. Although some industry experts believe that things will ease slightly as soon as the summer ends, for the most part, 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 San Antonio investment properties to your portfolio this year – or perhaps sell some before prices fall? Real Property Management Campanas can help! We work with rental property investors in San Antonio and the surrounding areas to facilitate off-market deals you won’t find anywhere else. Irrespective of 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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