As we kick off the new year, 2021 is set to bring us another exciting year in real estate. With the end of a year no one could possibly have predicted, and its effects still strongly felt and influencing our way of life as we get started with a new chapter, the economy has been extremely unpredictable. That said, it has certainly presented a lot of opportunities for the real estate industry.
The complex impact of the global pandemic in 2020 left interest rates historically low across the country and many markets extremely active with people relocating and remortgaging to take advantage of these lower mortgage rates and the increase in remote working environments.
Using a range of home sales data and market values, we have zoned in on some of the top US housing markets to watch in 2021.
Spokane, Washington
Property in Spokane has been growing in value steadily over the past year, with a 14.4% growth from $249,055 in October 2019 to $284,800 in October 2020. By which time, over 66% of homes on the market were being sold within two weeks and closing as quickly as they were listed. Whereas, at the start of the year, only half of properties on the market were selling at such rates. This quick turnaround in sales has led to limited inventory on the Spokane market, with only 694 properties available in October 2020, which is over a 50% decline from the 1,411 homes available in October 2019.
Richmond, Virginia
Much like Spokane, Richmond properties are flying off the market at such high speeds that inventory levels are dropping rapidly. With an increase in property sales from 1,620 to 2,011 in October 2019 to 2020, the speed of the sales also increased during this time. In October 2020, 65.6% of homes were closing on the market within two weeks of being listed, which is a 48.9% rise from October 2019 and 44.2% from October 2018. This rapid growth in sales led to a drop by in inventory from 3,743 in October 2019 to 1,803 in October 2020.
Buffalo, New York
The economic Rust Belt region is an area of industrial decline since its once booming economy in the 70’s. Although Buffalo is a notable city within this strip, it has shown some interesting trends in real estate of late, and remains one of the most active markets for first time buyers.
Population rates have slowly fallen in the area since 2010, yet property values have been steadily rising. However, with an average increase of 11% over the past year, from $145,604 to $161, 075, the homes in Buffalo remain affordable for first-time buyers. Inventory levels have more than halved over the past 12 months, from 2,451 in October 2019 to only 1,208 in October 2020, showing an increase in sales rates, and the rate of sales within a two week listing period rose from 43.8% to 64.8% following the trends of Spokane and Richmond.
Stockton, California
There are a few hot markets in Northern California, especially Stockton, which is showing some high levels of selling activity. With property values up by over 50% since 2015 and the overall population increasing by 8.4% since 2010, the city is very lively. Fast sales have led to decreased inventory, with 66.3% of homes selling within two weeks of listing in October 2020 from a measly 37.3% in comparison, in 2019. Inventory has dropped over the past year, from 1,555 to a mere 611 in October 2020.
Cleveland, Ohio
Like Buffalo, Cleveland forms a part of the economic Rust Belt district across the Northeastern and Midwestern area of the United States. However, the affordability of property in the area is also highly appealing, especially for first-time buyers, and has a lot still going for it. Sales activity is on the rise in Cleveland, with the property inventory dropping from 8,364 in October 2019 to only 4,876 in 2020. A steep 40% drop in the most recent year, following a short drop from 8,724 in 2018. This fall in available inventory is aligned with a sharp increase in speedy sales, with over 40% of homes being sold within two weeks of entering the market in October 2020, compared to only 18.4% of properties selling at the same rate back in 2019.
Recent Comments