5 Hottest Housing Markets in 2021
If you’re looking to make the most of your home buying dollars this year, you’ll probably want to steer clear of the Sunbelt. According to a new analysis by Zillow, that’s where the majority of America’s hottest housing markets will be this year.
In these sunny cities, competition is expected to be fierce, driving up home prices — not to mention bidding wars — in the process.
Are you planning to buy a home in 2021? These are the five hottest housing markets
1. Austin, TX
It’s the second year in a row that the Texas capital has topped Zillow’s list. And last year, the ranking certainly rang true. Home prices in the Austin metro area were up almost 24% in 2020 — well above national numbers and the biggest gain of all 50 major markets in the country.
A whopping 84% of experts surveyed by Zillow expect Austin to outperform national numbers once again. Considering active listings are now down 55%, it’s safe to say they’re probably right.
2. Phoenix, AZ
Phoenix came in at No. 2 on Zillow’s list of hottest markets for 2021. Nearly 70% of experts expect it to outperform national averages, and if recent numbers are any indicator, that’s almost a given.
Home prices in Phoenix are currently up more than 10% over the year, and active listings are 50% less than one year prior.
3. Nashville, TN
Tennessee’s largest city is projected to be one of the hottest housing markets in 2021 as well. Clocking in at No. 3, more than two-thirds of experts predict the city to outperform national numbers. It’s not a huge surprise given the current levels of competition in the area.
According to Realtor.com, supply is at a premium. New listings are down almost 20% over the year and total active listings? Those are down nearly 50%.
4. Tampa, FL
A whopping 60% of Zillow’s experts project Tampa’s housing market will outperform in 2021, and recent data support that thought. Home prices are up over 8% from December 2019, and active listings have declined more than 46% in the last year.
5. Denver, CO
Denver’s the only top-five city not located in the Sunbelt. But that doesn’t mean competition is any less fierce in the area.
As of December, home prices were up 7% in Denver, while active listings had plummeted 54% over the year.
Need help staying competitive in the hottest housing markets?
If you’re buying in one of these highly competitive markets, getting pre-approved can help you get a leg up.
Get in touch with an Embrace Home Loans office in your area to start the process now.
