In spite of the many challenges the country faced in 2020, the housing market continued to be one of the economy’s strongest elements. But with 2020 now behind us, what do the experts see ahead for the 2021 housing market? With all the continuing record-low mortgage rates and major shifts in rising markets due to increased levels of remote work,it’s natural for Chesterfield County rental property investors to wonder what type of housing market they may encounter in the months and years to come. While no one can say for sure, a few pointers can regulate what we might expect from the 2021 housing market.
Rising Home Prices
Most housing industry experts agree that home prices will continue to rise through 2021. Strong demand and low inventory levels continue to drive prices up in many markets around the country, and while some typically strong markets lagged in 2020, experts predict that these markets will rebound in 2021. Regardless, investors may want to keep an eye out for new emerging markets as workers no longer tethered to a specific location by on-site jobs are moving 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 many marketshave been having a hard time trying to sustain the demand for new homes. Many experts expect that trend to continue through 2021, despite hopes that things be back to normal 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 previously slow or declining markets thanks 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 large generation has already contributed to the strong demand for affordable starter homes, further reducing available supply and driving up home prices nationwide. As they compete for a new home, these would-be buyers will likely turn to rent or look for creative solutions to home shortages in their preferred areas. This may help investors find rentersfor properties at higher rates than ever before.
It’s (Still) a Seller’s Market
As home prices rise and listing lag behind demand, experts predict that 2021 will remain 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 many markets, with some areas seeing average listing times of days, not weeks. While some industry experts think things will ease slightly after the end of summer, 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 Chesterfield County investment properties to your portfolio this year – or perhaps sell some before prices fall? Real Property Management Richmond Metro can help! We work with rental property investors in Chesterfield 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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