With 2021 now in full force, we are seeing the housing market continue to thrive on a national level. And by the end of the year, the homeownership rate is expected to rise above 69% for the first time in over 15 years. So, if you have been thinking about buying or selling a home, here is what to expect in 2021:
- Positives for sellers: Inventory will remain low which helps homes sell fast. In fact, most homes hitting the market will sell in an average of 21 days (or faster in some areas of the United States). Equity is high which is great if you’re looking to move into a larger home for more space.
- Positives for buyers: Interest rates will remain low so you can get more house for your money which helps with home affordability.
Inventory Remains Low- Now What?
When inventory is low (i.e. there are more buyers entering the housing market than there are homes for sale) you need to get a competitive edge over other home buyers.
How do you get a competitive edge? We can help! Now you can take control, stand out among other buyers and close faster with the Churchill’s Certified Home Buyer and Rate Secured programs. If you are serious about buying home in the next three months and don’t have an all-cash offer (a very small percentage of buyer actually pay with cash), your best bet is to become a Churchill Certified Home Buyer and secure your interest rate today to help you save thousands.
There are no fees for either of these programs, so you have nothing to lose. In fact, you’ll likely save both time and money!
By becoming certified and secured during your home search, you can:
- Submit your offer with the ultimate confidence
- Win the bidding war in a multiple-offer situation
- Eliminate the worry of possible interest rate increases
- Close faster and move into your new home sooner
The Suburban Shift Will Continue
Housing market analysts are expecting the shift from urban to suburban areas (and even rural in some parts of the U.S.) to continue in 2021. Remote work is still very much in the mix for employers which allows people to leave the high dollar city life for a more affordable home in the ‘burbs. Home builders are flocking to these suburbs as buyers continue to prioritize larger homes, home offices, and outdoor space. If you are interested in living in a more urban area (or nearby), you may be able to get a great deal. Check out the top 7 hottest housing markets in the U.S.
The Top Housing Markets in 2021:
- Austin, Texas: There is a lot of affordable land options outside of the Austin. Another positive aspect of this area is the impact of big businesses (Oracle is located here, Elon Musk is building a factory and looking to possibly move Tesla’s headquarters here, and Apple is expanding their campus). Austin was also ranked as the hottest place to live last year.
- Phoenix, Arizona: There is plenty of room for growth in Phoenix and the freeway systems make it easy to get around (which is a bonus for any city). With nearly 300 sunny days a year, it's easy to see the bright side of things in this beautiful city! ☀️
- Nashville, Tennessee: No state income tax and one of the nation’s lowest tax burdens in the Nashville area has helped drive people to Nashville and its surrounding areas. Many corporate headquarters (i.e. Nissan North America, Bridgestone Americas, Dollar General, and Amazon) call Middle Tennessee home.
- Tampa, Florida: Lots of sunshine and warm weather are driving factors for the Tampa area. The state is expecting record population growth over the next 10 years or so. It also helps that Tampa is a deep water protected port with easy city access to almost anywhere!
- Atlanta, Georgia: There’s new construction once you reach the deep suburbs of Atlanta which is great for those looking to not live in the city. The weather is great, beautiful lakes and year-round golf add to the appeal of this area.
- Denver, Colorado: Despite what you may think about the weather here, it’s a sunny location with an amazing outdoor lifestyle for people who like to ski, hike, bike, or fish. It’s very accessible with public transportation from the airport and around the city. A lot of startup tech companies are moving into the area which helps with local jobs.
- Dallas, Texas: Job diversity is prime here—tech, financial services, medical, defense, and oil and gas. Amazon has a big plant in the area, and Toyota and American Airlines call Dallas home.
So, if the top locations are in Texas, Arizona, Tennessee, Florida, Georgia, and Colorado, where are people moving from? Here’s the top 3 places where people are moving from.
The Least Popular Housing Markets in 2021:
- New York, New York
- San Francisco, California
- Los Angeles, California
Seasonality Makes a Return
Last year, everything “normal” was tossed out the window due to the coronavirus pandemic. The stay-at-home orders halted the process of buying and selling homes in the U.S. during a time that is typically the most popular for listing a house on the market.
Once the country began to reopen, there was an uneven return of buyers and sellers which created a housing inventory nightmare. This trend continued into the autumn months which is usually a time that favors home buyers over sellers.
We’re expecting the traditional seasonality of home buying and selling to return in 2021. We’ve recently kicked-off the season (the first week after Super Bowl Sunday) and the traditional peak should occur in June and July; this should help bring some regularity to the housing market once again.
Bottom Line: What to Expect this Year
- Interest rates will continue to stay low but could slightly edge up as the coronavirus pandemic fades and vaccines become more readily available.
- Demand for homes will continue to stay high and bidding wars will become more common as seasonality returns.
- Home prices will continue to rise but is expected to do so at a slower pace than in years’ past.
- Housing inventory will still be tight but will start to rebound giving some relief to home buyers.