It’s safe to say that 2020 wasn’t the best year for investors with skin in the real estate game. Just a few short weeks after New Year’s Day, a deadly pandemic swept across the globe, killing millions and forcing countries to impose harsh lockdowns, restrictions guidelines in a desperate effort to contain the spread.
The pandemic affected everyone, no matter their occupation, social status or personal fortune. Seemingly overnight, most of the world was confined to their homes. Advised to wear masks and practice social distancing, our daily lives went from uneventful to painfully restricted in the blink of an eye.
This didn’t just affect our personal lives, however; it affected our professional lives as well. The lucky ones were able to work from home, forced to restructure their lives but still able to provide for themselves; others simply lost their jobs and were forced to scramble for any employment they could find.
In the midst of this frenzied upset, the real estate market was turned on its head by the incoming wave of instability, resulting in nearly catastrophic fluctuations, devaluation and other unfortunate side effects. While some local and regional real estate markets (such as Miami) managed to maintain growth, the real estate market as a whole was severely affected by the pandemic and its repercussions.
Going forward, however, things are looking up. We’ve entered a new year, and the end of the pandemic and the restrictions that accompanied it are in sight, due to new developments with the Pfizer and Moderna vaccines. Before too long, things might just go back to normal, leaving us free to resume our professional and personal lives. So what should we expect from the real estate market going forward into 2021? Let’s take a look!
Real estate trends to look for this year
In 2021, there’s a good chance that the real estate market is going to bounce back. After a year spent idling the time away in their homes, there are going to be a lot of fresh faced homebuyers seeking to find a new place to live. This influx of new home buyers is highly likely to result in a bump in real estate sales driving up demand, making it a good time to start thinking of becoming a real estate investor. So what are some more specific real estate trends to watch out for in 2021? Let’s take a look!
Increased home values
One thing that you can anticipate, in 2021, with near complete certainty is an increase in property values. This year has seen most people go through some tremendously turbulent times, with many facing a complete inversion of their personal lives. As the market slowly reopens, all signs are indicating that this will lead to increased home sales, and therefore increased home values.
More demand for homes in rural areas
Another way that life has changed in 2021 is the growing trend of working from home. After being forced to move many operations away from centralized offices to the homes of employees. If this trend continues, it will mean increased demand for homes in more rural areas, as employees gain the freedom to live wherever they please, working from their home offices.
Increased numbers of renters
During the past year, many employees and small business owners fell prey to the depressed market conditions, losing their sources of income and financial stability. For those not used to living within their means, this may result in them being forced to find more affordable accommodation. Considering how many individuals are in this situation, you can expect to see increased demand for affordable rental apartments and homes.
Cities to keep an eye on in 2021
Of course, there will be cities where these trends are more evident than others. These cities are likely to see exponential growth as new buyers enter the market, which will understandably raise the demand in the market and therefore the median home price. So what cities will show the most growth? Let’s find out!
We’re starting off strong with the Gateway to the Americas: the beautiful city of Miami FL! This gorgeous metropolis is a picture of American prosperity and industry, with one of the largest economies in the country, a long list of exceptional attractions and (you guessed it) a thriving real estate market!
That’s right; in spite of the pandemic and the events surrounding it, Miami managed to not only maintain its real estate market growth; it managed to break records! That’s right; this year, in the midst of the pandemic, the average time spent on the market for new listings dropped to a record-breaking 12 days!
Miami’s real estate market is a thriving environment. With a median home price of just under four hundred thousand dollars and a median property appreciation rate of 6.5%, investments made in this market are sure to pay off in the long run. Whether you’re looking for a place to settle down or just want a good investment opportunity, this might just be the place for you.
Anyone who wants to take advantage of this opportunity should get in touch with the real estate agents in Miami FL and see what’s on the market. With the help of these skilled, experienced, real estate professionals, you’ll be able to find a listing that suits your needs and your budget in no time at all!
For this next one, we’re taking a journey out into the wild west, to the city of Houston TX! This city has a whole lot to offer; from its long list of attractions to its rich cultural attractions and excellent selection of restaurants, there’s no shortage of reasons why you might want to make it your home.
Going forward in 2021, the real estate market is likely going to become even more of a reason to make the move to Houston. Even during the height of the pandemic, Houston saw record numbers of both economic and population growth, expanding local infrastructure and commerce to a substantial degree.
So how does this translate to the real estate market? Well, take the median home price for example. At around $210,000, homes in Houston TX are surprisingly reasonably priced. The property appreciation rate, on the other hand, is 9.5%, far higher than the national average. If you’re looking for an investment, you can count on making a profit here!
Regardless whether you’re looking for a place to live, a place to invest or both, this city might have what you’re looking for. If you’re interested in learning more, get in touch with one of the real estate agents in Houston TX and see what’s on the market. With any luck, you could be Houston’s newest resident!
Another city likely to see increased growth in the real estate sector is the charming little town of Bentonville, Arkansas. While the city has plenty to see and do as well as a thriving arts and culture scene, the largest factor drawing new residents in is the high demand for unskilled laborers. In these uncertain times, well paid positions for those with limited skills and job experience are soon going to be in high demand.
With increased demand for workers comes increased demand for housing, and that has become abundantly evident in the past months. In the past year, property values have appreciated by over 13%, raising the median home price to just over $293,000. If this trend continues, Bentonville could become an even better investment opportunity than it is already.
Where this is likely to be most impactful is the rental market. With more and more residents coming in search of employment, rentals are likely to become more and more valuable as the only option for lower income accommodation seekers without any other options. If you’ve ever thought of becoming a landlord, Bentonville is a great place to pursue that aspiration.
Of course, due to the influx of new residents the city is likely to witness in the near future, now is a great time to buy property in the area. If this sounds like something you’d be interested in, you’ll want to contact one of the real estate agents in Bentonville AR and see what’s available. Before you know it, you might be calling the city home!
For this one, we’re taking a look at the other side of the country, specifically the city of Seattle, Washington. This city has seen unprecedented growth in the past 10 years, with the median home price more than quadrupling in this time period. During the months and years following the end of the pandemic that is now in sight, we can count on seeing this trend continue.
Although real estate values in Seattle dipped temporarily during the pandemic in 2020, the market is once again trending upwards. While this city and its $816,000 mean home price doesn’t offer a great deal to those in lower income brackets, those with the means to do so should consider investing in this city and its rapidly growing real estate market.
As for the property appreciation rate in the city of Seattle, things certainly aren’t sleeping (pun intended) here. At just over 8.2%, the appreciation rate of property in Seattle isn’t the highest in the country, but it makes up for this with its potential to net you exponentially increasing returns. Investors, take note!
If you’re thinking of investing in property or are just looking for a change of scenery, the real estate agents in Seattle WA will happily advise you on buying a home in Seattle. There’s a great deal of variety concerning what’s available, so it shouldn’t be particularly difficult to find something that suits your needs.
The 2021 Real Estate Trends Conclusion
As is the case with any new year, 2021 is full of untapped potential. Things are still a bit uncertain at the moment, but with luck we’ll have a much better year than the one we just endured. It may not be one for the history books, but we’re optimistic as to how it will turn out. From all of us at RealEstateAgent.com, here’s hoping!