Real estate trends and home prices are cyclical and depend on factors out of our control. These variables are difficult to predict and include government policies, economic changes, geopolitical events, and local market changes.
Although it's impossible to guess what will happen with 100% accuracy, being on top of the housing market forecast can give you an idea of what to expect if you buy or sell a house this year. Keep reading to learn Houston's housing market predictions for 2021.
Despite the pandemic-induced recession, the Texas real estate market has been on fire this year with historically-low interest rates and a sudden wave of relocations enabled by remote work.
This year Houston's market will remain competitive, with homes likely continuing to receive multiple offers from both home buyers and home buying companies in Houston, TX. Here are some predictions for 2021:
According to Realtor.com's 2021 housing forecast, Houston's home prices will continue increasing in 2021, putting things hard for first-time buyers and those on a budget. In 2020 Houston's home values went up 5.2%, and the latest forecast indicates that they will rise 7.8% this year.
In the Spring of 2020, uncertainty and health concerns encouraged homeowners to pull their listings. However, with vaccines' availability and the rise in home prices, sellers will likely reenter the market sooner than later.
Also, new construction projects are expected to hit the market in the second half of the year. This will benefit buyers with more housing options and better prices.
The Federal Reserve is expected to support a low-interest-rate environment for most of the year. These low-mortgage rates will continue to be a financial incentive for prospective homebuyers who qualify.
Predictions indicate that the 2021 Houston real estate Market will bring many opportunities for those who own a rental property or are thinking of investing in one. Besides building your equity, investing in a rental property for the long term would help you generate cash flow through rental income.
Houston's low housing inventory provides sellers with immense negotiating powers, so if you think of selling your home, now might be the time to act before sellers and new construction projects hit the market and decrease prices and competition.
If you are a home seller looking to get top-dollar and time isn't an issue, then a real estate agent is generally the right choice. But if you are under time pressure, and are looking for a fast and safe selling process, then selling your home to a home buying company in Houston, TX, is the best way to go.
Home buying companies usually buy houses for cash and as-is. This means that they will offer you a price below market value, but you won't have to worry about any costs, commissions, inspections, repairs, showings, staging, closing costs, or taxes.