Investors, agents, and real estate professionals are constantly looking for the hot real estate markets. Knowing which cities are supposed to have a strong economic surge and which cities are struggling can help agents create an effective marketing strategy. Buyers and sellers expect their real estate agents to know in-depth information about the cities they represent, which is why staying on top of changing trends is crucial for real estate agents across the country.
When it comes to housing prices and real estate trends, here are the cities you should be watching (and a few to avoid).
How Covid-19 Will Continue To Impact Housing Prices
Now that more people have the option to work from home, they also have more options on where to live. No longer tied down to a specific city or office location, buyers can expand their home search and move to cities with affordable real estate and healthy economies. With more options on where to live, it’s no surprise that people are being pickier about where they buy.
Sellers are also paying close attention to the market and the way Covid has changed the market. Sellers in areas where home prices are rising are excited to list their homes and maximize their ROI.
Hottest Markets In 2021
Zillow released a new report with their expert predictions about the hottest markets for 2021. These cities are:
- Austin, Texas
- Phoenix, Arizona
- Nashville, Tennessee
- Tampa, Florida
- Denver, Colorado
Austin has been on the radar as one of the hottest real estate markets for a while now, even before Covid. According to the report, “The median price of a home sold in Austin in December was up close to 24% compared with December 2019. That is the largest gain among the 50 largest U.S. housing markets.” Most of the cities on the list have a few things in common: they have a strong and steady job market, affordable family-size homes, low mortgage rates, and warm weather.
Another thing these hot markets have in common is that they are hotspots for millennials. Millennials will continue to drive the real estate market into 2022. And unlike the generations before them, millennials aren’t afraid to jump into homeownership. They’re also not limiting their home search to humble fixer-uppers and are positioned to buy higher-priced homes in affluent areas.
Coldest Markets In 2021
The pandemic hasn’t been as kind to other major cities, and areas known for high home prices and rental rates will continue to struggle in the last half of the year. The cities expected to underperform when it comes to real estate include:
- New York
- San Francisco
- Los Angeles
This doesn’t come as a surprise to many, as these areas are known for their significantly high cost of living. This, combined with the widespread job losses and steep decline of the economy means fewer people will be looking for homes in these areas, especially millennials and first-time home buyers.
The pandemic didn’t turn the housing market upside down like many experts feared in the beginning, and real estate experts are already reporting signs of a rebound. There is an increase in new builds in suburban communities compared to this time last year, and as people continue to see the economy slowly (but surely) improve, more and more buyers and sellers will have increased confidence in the market.
In summary, experts say housing prices, sales, and mortgage rates are going up, while supply and number of days on the market go down. Knowing this info will help you navigate the market, which in turn makes you a better real estate professional. Understanding the trends and how Covid-19 is impacting real estate across the nation allows you to serve your clients better.
Another thing that allows you to serve your clients better is continued education. Mbition offers a comprehensive list of online real estate courses and classes to help you advance your career. From understanding market conditions to earning your appraiser’s license, these courses are designed to help good agents be great.