The new year will bring in more good news for Texas real estate, according to a 2021 forecast for the residential market by the AceableAgent online real estate school.
“This year, the Texas real estate market has been resilient for homeowners and investors,” Laura Adams, analyst at AceableAgent, said in the firm’s forecast. “Mortgage rates are expected to remain low, and when combined with lagging supply, Texans should see higher demand and home prices in many areas of the state in 2021.”
Aceable’s fastest-growing Texas markets:
1. Austin
“Austin is one of only two Texas cities to make Realtor.com's list of 50 Hottest Zip Codes for 2020. It comes in at number 38. The city is also number two on Buildium's Top 50 Up-and-Coming Real Estate Markets to Watch for 2020. With its thriving music scene and strong job market, Austin attracts aspiring professionals from all over the United States. The greater Austin metro area grew 29.8 percent over the last decade and now tops two million. The average price of a home here is $451,000, up 15.9 percent from the year before. Listings are snatched up after only 10 days on the market, and there are often multiple offers.”
2. Flower Mound
“Flanked by recreational lakes, had a population of 79,135 in 2019. It grew 22.4 percent over the last decade. The real estate market here is very competitive, with many homes receiving multiple offers. The average price of real estate in Flower Mound is $428,000, a five percent increase over last year. Homes sell for 0.9 percent less than the asking price on average, and they sit an average of 30 days on the market.”
3. Fort Worth
“Due to the greater affordability of properties here, the prospects for Fort Worth look better than those for sister city Dallas. It is now the 13th largest city in the United States, with a population of more than 900,000 residents. It has experienced a 22 percent growth rate since 2010. Fort Worth has a ‘very competitive’ Redfin Compete Score of 73. Single-family homes sell for an average of $250,000, a 7.8 percent increase from the same time last year, and they remain on the market an average of 29 days.”
4. Grand Prairie
“Grand Prairie is a populous suburb with just over 175,000 residents. Realtor.com ranks it 27 on its list of the 50 Hottest Zip Codes for 2020, and its Redfin Complete Score is 84, or very competitive. The average price of a home here is $265,000 — 12.3 percent more than last year — and homes sell for just 0.3 percent less than asking price after being on the market an average of 21 days.”
5. Irving
“Irving had an estimated population of 239,798 and grew 10.9 percent over the last decade. Home to the region's largest office park, it has one of the state's healthiest economies. The average price of a single-family home here is $302,000, an 11.7 percent increase over last year. Houses sit an average of 34 days on the market here.”
6. Katy
“Population has grown 53.9 percent over the past decade. It is now 21,729, up from 14,119 in 2010. Homes sell fast here, only remaining on the market 20 days on average. The average sales price of a single-family home is $275,000, which is a 10.4 percent increase from last year.”
7. Leander
“Austin's suburbs have been growing at a faster pace than the city itself for several years. Growth is particularly strong in Leander, a city 30 miles to the north. In fact, this Williamson County suburb of nearly 70,000 has been named the fastest-growing city in the United States several times in the last decade. Close to the area's recreational lakes, Leander is a family community bristling with new housing developments. The Redfin Compete Score is 76, or very competitive. The average home sale price is $309,000, up 3 percent from last year. Houses stay on the market an average of 20 days and sell for 0.5 percent less than listing price.”
8. Round Rock
“Round Rock is more than just another Austin suburb. The home of Dell Computers, it is a thriving city in its own right. Its population has grown a whopping 33.3 percent in the last decade and now stands at 133,372. The Redfin Compete Score for Round Rock is 88, making it a very competitive market. The average sales price of a home here is $310,000, up 3.5 percent from the year before. Houses sell at list price, and they only remain on the market 10 days on average.”
STATEWIDE TRENDS
Low Inventory
“Nationwide, inventory declined 32.6 percent in 2020," AceableAgent said. "This trend is evident across much of the Lone Star state, especially in the prime markets around Dallas, Houston, and Austin. The lack of inventory continues to inflate sales prices for now, but many analysts predict that prices may decline when more sellers are forced to list their homes in 2021.”
Urban Flight
“The COVID-19 pandemic has led to an increase in people looking for homes in the suburbs, lake regions, and countryside. According to Reform Austin, the hottest properties are lake homes and ranches. It remains to be seen how long people will continue to leave the cities, but this trend is expected to continue through 2021.”
Demand for Affordable Homes
“With the average sales price inching higher even as the employment rate increases, more people are buying new and existing properties that list for $300,000 and under. This is by far the most competitive market statewide.”
At the same time, “Due to the economic crisis, many home lenders have raised their underwriting requirements, such as looking for higher credit ratings or larger down payments. Since that could make it more challenging to qualify, it’s a good idea to review your budget and shop several lenders to get the best mortgage offer possible.”
Globe Life Field Wins Award for Best 2020 Sports Facility Debut
Arlington's Globe Life Field won the Best Facility Debut award in Sports Business Journal's 2020 Year-End Awards. "The process (of picking the awards) allowed us to look back at an incredible period of change in sports business," Abraham Madkour, the Journal's publisher and executive editor, said in a release. Globe Life debuted this year without fans, as home to the Texas Rangers. Major League Baseball assigned the 2020 National League Championship Series and World Series to Globe Life, giving the ballpark its first taste of post-season baseball during its debut season.
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