Given the many challenges the country faced in 2020, the housing market remains one of the economy’s strongest elements. But since 2020 is now over, what do the experts predict 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 natural for North Ogden rental property investors to wonder what type of housing market they may encounter in the months and years to come. Even though no one can definitely predict it, we can ascertain some signs with what we might see from the 2021 housing market.
Rising Home Prices
Most housing industry experts foresee that home prices will continue to rise through 2021. Strong demand and low inventory levels begin to drive prices up in various markets across the country, and while other normally strong markets lagged in 2020, experts predict that these markets will rebound in 2021. Despite that, investors may still want to focus on new emerging markets since employees are no longer tethered to a specific location by on-site jobs migrating 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 across several markets have failed to sustain the demand for new homes. Lots of experts expect that trend to continue through 2021, amid expectations that things will start recovering 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 shifting away from cities and toward smaller towns and suburban areas for months, which is anticipated to carry on. Investors may find new opportunities in previously slow or declining markets caused by the sudden influx of people seeking 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 big generation now has 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 probably turn to rent or strive for 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
Since 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 other markets, with some places seeing average listing times of days, not weeks. Although some industry experts assume that everything will ease slightly when the summer season is over, on the whole, buyers looking for bargain properties are expected to have a lot of competition all year.
After evaluating the 2021 housing market, are you looking to add new North Ogden investment properties to your portfolio this year – or perhaps sell some before prices fall? Real Property Management Northern Utah can help! We team up with rental property investors in North Ogden and the surrounding areas to facilitate off-market deals you won’t find anywhere else. Whatever 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!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.