LEX’s strategy director and president, Craig Hatkoff, discusses his company, which allows investors to own commercial real estate.
The housing market is heating up in the cities of the Sun Belt.
Austin is slated to be the hottest real estate market in the country in 2021, joining a number of cities like Nashville, Tampa and Denver, which are likely to see spikes in home values, suggests a new report from the Zillow real estate market.
Up to 84% of economists, investment strategists and real estate experts surveyed by Zillow about the US housing market in 20 of the nation’s largest markets said that Austin home values would exceed the national average. What’s more, page views on Zillow listings for sale in Austin by out-of-town researchers increased 87% in November 2020 compared to a year earlier in pre-pandemic days.
Austin is slated to be the hottest real estate market of the year, a new report suggests. (iStock)
Phoenix came in second, with 69% saying its value would exceed the national average, followed by Nashville with 67%, Tampa with 60% and Denver with 56%. Economists and investors surveyed have found that young Americans, especially Generation Y, are taking advantage of low mortgage rates in the cities of the Belt of the Sun, especially during the pandemic, when work is remote and the climate is ideal for living in open air.
“The pandemic did not affect the housing market as much as the fast-moving trends we saw coming in 2020,” said Zillow senior economist Jeff Tucker in a statement.
“These Sun Belt destinations are migration magnets thanks to relatively affordable, family-sized homes, expanding economies and sunny weather. Record low mortgage rates and rising demand for residential space, coupled with an increase in millennials buying their first homes, will keep pressure on house prices in the near future. “
INCREASES IN HOUSING CONSTRUCTION, AS INCREASE IN PURCHASE PRICES
The average list price for homes in the Austin area rose 23.6% year on year, the biggest increase among the 50 largest markets in the US, according to Zillow.
“During the pandemic, I think a lot of people who spend a large part of their wages on rent or mortgage in cities like New York and San Francisco started working from home and suddenly had options. Their dollar goes much further in the 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, one of Zillow’s top agents in Austin and CEO of The Agency Texas. “These factors will continue to attract people to the Austin market in 2021.”
HOUSE PRICES ARE GREATER FOR MORE THAN 6 YEARS
Meanwhile, house values in coastal cities are expected to fall short of the national average, with 82% of economists and investors interviewed saying that New York, in particular, would experience less than expected growth in 2021; 77% saying San Francisco and 67% citing Los Angeles.