Regardless of the many challenges the country faced in 2020, the housing market stayed one of the economy’s strongest elements. But with 2020 now behind us, what do the experts see in the future for the 2021 housing market? Despite the continuing record-low mortgage rates and major shifts in rising markets due to increased levels of remote work, it’s common for Burbank rental property investors to ask themselves what kind of housing market they may encounter in the months and years to come. While nobody can tell for sure, some measures can specify what we could anticipate from the 2021 housing market.
Rising Home Prices
Most housing industry experts believe that home prices will continue to rise through 2021. Strong demand and low inventory levels keep driving prices up in numerous markets across the country, and while some typically strong markets lagged in 2020, experts predict that these markets will rebound in 2021. However, investors may prefer to keep an eye out for new emerging markets since employees are no longer tethered to a specific location by on-site jobs and are relocating away from urban centers.
Builders Struggle to Keep Up
With plenty of buyers than homes for sale, and due in part to pandemic shutdowns in 2020, builders in several markets have failed to come up with the demand for new homes. Numerous experts expect that trend to continue through 2021, amid expectations that things will 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 toward smaller towns and suburban areas for months, which is possible to continue. Investors can find new opportunities in formerly slow or declining markets thanks to the sudden influx of people searching 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 search for a new home, these would-be buyers are willing to turn to rent or seek creative solutions to home shortages in their preferred areas. This can help investors find renters for properties at higher rates than what they used to be.
It’s (Still) a Seller’s Market
As home prices rise and listing lags behind demand, experts predict that 2021 will keep on being very much a seller’s market, at least until the fall. The average time a home spent listed for sale has declined dramatically in several markets, for certain areas seeing average listing times of days, not weeks. Even though some industry experts believe that things will ease slightly after the end of the season, generally, buyers looking for bargain properties are probably going to have lots of competition all year.
After evaluating the 2021 housing market, are you looking to add new Burbank investment properties to your portfolio this year – or perhaps sell some before prices fall? Real Property Management Vision can help! We partner with rental property investors in Burbank and the surrounding areas to facilitate off-market deals you won’t find anywhere else. Regardless of 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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