The Houston residential real estate forecast for 2021 is expected to continue a long-standing trend of increased values. However, with most foreclosures and short sales not impacting the market, predictions are predicated on previous performance and current trends. Read on to learn more about the Houston real estate market forecast for 2021.
The Houston residential real estate forecast for 2021 is predicted to extend a lengthy trend. Since 2012, about eight to nine years ago, home prices in Houston have risen from $117,000 to nearly $200,000, which represents an increase of approximately 71% in less than a decade. Just in 2019 alone, property prices in the Houston market rose by 5.2%, which exceeds the average over the past ten years of 4.69% since 2011. However, in the first nine of 2020, the appreciation rate stood at 2.61% but fell to 1.33% during the last quarter of last year.
However, most economists and real estate analysts believe that 2021 will either match or exceed the previous average, predicting an appreciation rate in residential real estate of 6 to 7% in the Houston area. What’s more, experts believe that Harris County at large will experience an increase in property values by 7.9% over the next twelve months. Meanwhile, the Houston-The Woodlands-Sugar Land Metro area is predicted to grow at a more modest rate of 5.2% over the course of 2021.
If these forecasts hold true, this is very good news for homeowners, sellers, and existing property investors. Buyers should act now to take advantage of affordable prices and near historic low-interest rates.