Phoenix # 2 in the Hottest Real Estate Markets of 2021

Phoenix will be America’s second hottest real estate market in 2021, topping a list of mostly sunbelt cities that are expected to continue warming faster than the country’s major coastal markets new Zillow expert survey. Ranked # 1 on America’s Hottest Real Estate Market in 2021: Austin, Texas.

The booming Texas travel destination offers a number of sunny and relatively affordable subway areas – Phoenix, Nashville, Tampa, and Denver – which are most likely to outperform the nation in home growth, according to a recent panel of economists and real estate professionals Zillow surveyed.

The Zillow Home Price Expectations Survey, sponsored by Zillow and conducted quarterly by Pulsenomics LLC, interviews a large group of economists, investment strategists, and real estate experts about their predictions about the US real estate market. The Q4 survey also asked expectations for home value growth in 2021 in 20 major markets compared to the nation1.

A staggering 84% of respondents said Austin scores above the national average, compared with just 9% who think it would do worse. Phoenix came in second with 69%, followed by Nashville (67%), Tampa (60%), and Denver (56%). Pageviews of Zillow sales listings in Austin by searchers outside of the city increased 87% in November compared to 2019.

The top 5 metros are all affordable options compared to expensive coastal areas that have seen home appreciation in recent years. They offer relative value to millennials looking to take advantage of low mortgage rates to buy their first home. The top 5 are also mostly sunny areas. Four of the five counties with the largest cities in these MSAs are in the top third of the counties in the adjacent US based on average daily sunlight NASA data analyzed in the Washington Post. Davidson County, home of Nashville, was just below the center line.

Top 15 real estate markets for 2021

“The pandemic did less than stimulate the real estate market than the accelerated trends we saw through 2020,” said Jeff Tucker, senior economist at Zillow. “These sunbelt destinations are migratory magnets thanks to relatively affordable family-sized homes, booming economies and sunny weather. Record-low mortgage rates and increased housing demand and a surge in millennials buying their first homes will keep house price pressures there for the foreseeable future. “

Improved economic outlook thanks to the introduction of COVID-19 vaccines and better treatments were seen as the most likely tailwind for the real estate market in 2021, followed by continued strength in first-time home purchases by millennials. It has proven to be a strong driver of demand in 2020 and it is is expected to last for many years to come.

Those who are looking for a home – especially her first – become enter a competitive market. Pre-approval for a mortgage, working with a trusted agent and Take advantage of online research tools are a Some tips to help shoppers get away with it.

Last year’s poll predicted Austin to be the hottest market, and it turned out to be correct. By mid-December, the median list price for homes in the Austin metropolitan area rose 23.6% year over year – the largest increase among the 50 largest US markets.

“I think during the pandemic, many people spent a large portion of their paychecks on rent or mortgage in cities like New York and San Francisco to work from home and suddenly had options. Your dollar goes much further south, the climate is better, and Austin has a lot to offer – From the food scene to outdoor activities and live music, ”said Thomas Brown, Zillow Premier Agent in Austin and CEO of The Agency Texas. “These factors will continue to attract people to the Austin market in 2021.”

Expensive coastal cities are expected to be below the national average – 82% of respondents said New York would see below average growth in 2021. San Francisco (77%) and Los Angeles (67%) round off the bottom of the 20-city list.

29% of panellists cited tight delivery terms and affordability concerns as the biggest headwinds.

“While most of the changing US real estate landscape is forecast to have sustained tailwinds this year, certain high-priced real estate markets are facing headwinds,” said Terry Loebs, founder of Pulsenomics. “Accordingly, home appreciation rates in coastal cities like New York, San Francisco and Los Angeles are expected to decline from the notable levels of last year.”

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