Real Estate Is Expected to Shine in 2021
The housing markets expected to be the strongest in 2021 are tech hubs with strong job creation, state capitals where home shoppers may get more square footage for their money, and smaller cities with greater affordability, according to a new analysis from realtor.com®.
But none of these areas boast the cheapest home prices in the nation. In most of them, buyers will pay more than the national median home price of $348,000, realtor.com® notes. “The housing markets in tech towns are thriving because that industry is doing well,” says Danielle Hale, realtor.com®’s chief economist.
The housing markets identified on realtor.com®’s list are expected to experience higher price growth and more sales than other markets across the country. Median list prices are expected to increase 6.9% in these markets compared to 5.7% nationwide. Home sales in these areas also are expected to jump 13.1% compared to 7% nationally.
To develop the list, realtor.com® researchers factored in past sale prices and the number of sales; rate of new construction; and previous and anticipated economic, household, and income growth. They tracked 100 of the largest metro areas in their study. Here are the seven metros realtor.com® predicts will outperform other housing markets in 2021:
1. Sacramento, Calif.
- Median home price: $554,000
- Anticipated home price change: 7.4%
2. San Jose, Calif.
- Median home price: $1,199,050
- Anticipated home price change: 10.8%
3. Charlotte, N.C.
- Median home price: $368,820
- Anticipated home price change: 5.2%
4. Boise, Idaho
- Median home price: $445,000
- Anticipated home price change: 9.1%
5. Seattle
- Median home price: $629,050
- Anticipated home price change: 9.7%
6. Phoenix
- Median home price: $412,260
- Anticipated home price change: 7%
7. Harrisburg, Pa.
- Median home price: $262,000
- Anticipated home price change: 3.8%
Sources: Realtor Magazine, “The Top 10 Housing Markets of 2021—Who Made the List?” realtor.com®