The US housing market is far from crashing in 2020 or 2021. What this means for property investors is high demand for vacation rentals in 2020. Healthcare & Social Assistance, Government, Accommodation & Food Services industries are expected to make up for the bulk of the jobs this year vis-a-vis losses from the Energy, Retail, and Information sectors. . The estimated 811,000 new homes sold in 2020 was an 18.8% increase from 2019 and should serve as proof that new home demand can and will continue well into 2021. ... according to Texas A&M Real Estate Center and Houston … For advice on the 2020 Houston housing market forecast, contact Paige Martin, the #1 Keller Williams Realtor in Houston and #1 Realtor in the state of Texas. However, you should keep in mind that this is only the cap level cap rate, while the top neighborhoods in Houston for real estate investing offer significantly higher values. All Houston home value information was sourced by the HAR MLS database. According to the CDC, the main reason that COVID-19 is of higher concern is the pace at which it’s spreading: “The virus that causes COVID-19 seems to be spreading easily and sustainably in the community (“community spread”) in some affected geographic areas. Among the key housing market predictions for 2020… The air is starting to come out of Houston’s robust housing market. Candidly, we do not have a lot of good news for sellers. As an example, new construction homes between $1M-$1.5M in Bellaire are on the market for an average of 285 days now as sales have declined by 30%. As we have seen in other markets, the iBuying industry should have a significant impact on the real estate industry. This has never happened since NYMEX oil futures began trading in 1983. Russia and Saudi Arabia flooded the world with excess supply. Here’s what happened to the US stock market (Dow Jones Index): And here’s what happened to Houston Inner Loop Real Estate Prices: As a note the ~3% drop in median home prices in 2016 from 2015 in Inner Loop Houston real estate was correlated to the drop in energy prices. The Herlands Declining Home S And Falling House Expected Raboresearch. We’re seeing a decrease in demand in very stylistic homes (e.g. The stock market, the trade war with China, and upcoming political theatre have created (and will continue to create) a lot of drama. Before the start of the year, The Bayou City projects moderate job growth in 2020 with over 42,000 net new jobs expected in the Greater Houston area. Avoid 9 Costly Mistakes Sellers Make. What we tell them: Unless you absolutely need to sell, you have to strap in and hold on. The Houston Properties Team ran a study of past shocks (Hurricane Harvey, 2008 Crash, 2015 Oil Crash) and how it reshaped the market. We have updated this article (please see above) noting the (current and potential) impact of the recent events.*. The Houston Real Estate Market Pre-COVID-19 & Oil Price Crash, Job Losses In Houston: Areas And Industries At Risk. Many buyers are also asking for homes that are “light and bright” with open floor plans. The #1 determining factor for the real estate market is job growth. As long as you don’t have to sell in a short time you should be able to ride this out. The Houston housing market is facing a lot of uncertainties. Agents not only will contend with the potential of rising … Expect the market to dip around September to November as campaign ads and electioneering pull buyers out of the market pool. For instance, Houston home inventory is at 4 months. US home sales totaled 5.64 million in 2020 … Whether you buy or sell first depends on the current market and your unique situation. Get a free home valuation for your house and trends on your neighborhood. It could last more than two years depending on how oil, gas, and retail do in the next few months. 5 - Houston Housing Market As to the lease of Single family homes, it rose 5% with an average rent unchanged at $1,764 Whereas the lease of townhomes/condo fell 5.5% with average rent of 2.7% to $1,569. But that is unlikely to affect the housing market in 2021, according to Hepp. Finally, on March 29, 2016, WHO (the World Health Organization) terminated the status of the epidemic as an emergency of international concern.”. Cost of living in Houston ranks third lowest among the nation’s top 20 most populous US metropolitan areas. Related: Will the 2020 US Housing Market Be a Seller’s Market or a Buyer’s Market? In an outlook published December 4, … 16. In the 2nd quarter of 2020, the coronavirus global pandemic and the oil price crash has significantly reshaped all industries all over the city. Buyers should be wary of “seemingly good deals on paper”. Quite a few of them won’t be able to survive this historic downturn. This economic diversification is expected to continue in 2020, which is one of the major Houston housing market trends as it will bring more stability and reassurance to local and out of state real estate investors in residential properties. A good number of oil companies took on too much debt during the good times. Tampa Real Estate 2018 vs. Tampa Real Estate 2017. Our clients don’t have to deal with the usual stress and problems that usually come with real estate transactions. Typically, new construction homes come with a higher purchase premium, and repair and maintenance require too much investment. Strong rental demand means high rental income and good occupancy rate, which ultimately leads to good rate of return in terms of both cap rate and cash on cash return. Should Investors Do Their Own Real Estate Property Management. Nixza Gonzalez - April 16, 2019. WorldAtlas.com wrote: “The world’s most widespread Ebola virus disease outbreak happened in West Africa in 2013 and lasted until 2016. Houston created over 80,000 jobs (a 2.7% year-over-year increase) in the last 12 months. Of all economic sectors, tourism is one of the most crucial ones for real estate perspectives, especially in terms of short term rentals. What’s the Best Airbnb Analytics Platform for 2019? Housing Market Forecast 2020 S And Outlooks Property Management Managecasa. Your browser either doesn't support Javascript or you have it turned off. However, we also expect to see a lot of fake deals. In order to figure out predictions for the next upcoming years, we must be able to analyze the current housing market. Need To Sell? We expect the housing market to mirror this growth throughout the year, albeit at a slower pace compared to the record-breaking numbers we’ve seen in the last two years. Has the U.S. Housing Market Become Recession-Proof? They either want something “new and pretty” or they want to be compensated for doing the work themselves. Houston’s economy should add around 50,000 net new jobs this year. We built a proprietary data analytics package to help give you the best information on any neighborhood, building or home. RENTALS.CA’S 2020 PREDICTIONS. Comments. In a survey of 104 economists and real estate experts conducted by Pulsenomics and Zillow, home prices are expected to grow by 3.7 percent in 2020. A lot of current homeowners have been reaching out and seeking advice. Major loss of life and socioeconomic losses were suffered during this epidemic . Paige also serves a variety of non-profits, civic and community boards and was appointed by Houston’s Mayor to be on the downtown TIRZ board. "The foreclosures that do occur in 2020 or 2021 won’t affect the market until 2022," she said. 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