Like any industry, the real estate market faced unprecedented times due to the ongoing pandemic. COVID-19 changed how Americans work, shop, and live. This ultimately impacted the housing market all over the country. Mortgage interest rates dropped, offering historically low percentages. Buyers everywhere were eagerly looking into making their next big purchase. However, the market became an incredibly competitive battlefield. More people purchasing homes  meant a dramatic impact on the housing inventory. As soon as a house was listed, multiple offers and requests to view the property were made. For buyers, the home shortage means being ready to buy at any moment’s notice. Sellers, on the other hand, have the advantage.

Whether you are looking to buy your first home or invest in a few properties, it is important to understand the prospects of the real estate market in 2021. Every city is different and you want to purchase in one that is thriving. Here are a few real estate markets to watch out for in 2021 as you consider buying property.

1. Killeen, Texas

Median Home Price: $177K

At the heart of central Texas is the growing town of Killeen. This city is conveniently located near Fort Hood, one of the largest military bases in the United States, making homes in this area an exceptionally good buy for military personnel. This is also a great purchase for investors looking to rent out properties.

Killeen has a competition score of 88, thus popular listings go pending in about 3 days. You want to have your finances in order to secure the home you want quickly. On average, conventional loans take weeks if not months to approve and provide funds. Do not let this get in the way of you and your dream home. Hard money loans are worth taking a look at because they do not evaluate credit score or your financial health. Instead, loan providers like hard money lenders San Antonio will focus on the value of a property and use it as collateral.

The Lone Star State has plenty of homes to offer, but it is in your best interest to invest in properties that will flourish within the next few years. There are numerous qualities to look for in a home, including type, location, and size.

2. Phoenix, AZ

Median Home Price: $320K

There are many trends in the Phoenix real estate market to keep an eye on, but the most important ones are both job and demographic growth. These two factors have a significant impact on the market. Popular neighborhoods, such as Downtown Phoenix, Paradise Valley, and Stetson Valley are diverse and offer plenty of value for potential buyers. Home sales and prices are expected to rise, so if you want to purchase in The Grand Canyon State, you should act fast.

3. Boise, Idaho

Median Home Price: $445K

There is a misconception that Idaho is just potatoes and farmland. Although Idaho is the top contributor of spuds, this state is quite a gem. The city’s capital is one of the fastest growing in the nation due to its dramatic economic increase and population surge. Buyers are moving to Boise from out-of-state, causing the city to experience “Californication.” In short, people are moving from west coast cities like California, Seattle, and Portland at a rapid rate. Similar to other housing markets, Boise has seen a shortage in properties, causing a spike in home prices.

4. Riverside, CA

Median Home Price: $468K

Riverside and neighboring cities have become popular locations to purchase property because of the proximity to coastal areas like Los Angeles. It is a popular trend among those who want to live in California without the hustle and bustle of city life.

Additionally, Riverside is a college town that receives much of its traffic from the local university. It is a superb investment because you can rent out property to college students year-round. However, hold off on this idea until classes are no longer virtual. Due to COVID-19, universities have put a hold on in-person instruction.

The Bottom Line

The real estate market is always fluctuating, but what remains constant is the desire to move. As always, expect the unexpected when investing in real estate. These predictions are not set in stone. Buying a house is an overwhelming process, but with a little planning you can guarantee a stress-free purchase. Good luck on your home buying journey and may 2021 be as prosperous as ever.