Austin heads Zillow’s forecast of this year’s best home markets.
Dallas-Fort Worth has made it on the list of the U.S. metros expected to be the top 2021 housing markets.
The D-FW area ranked sixth among the 20 markets in Zillow’s survey.
Austin ranked first in the annual report — its second year in a row to head the list.
“The pandemic has not upended the housing market so much as accelerated trends we saw coming into 2020,” Zillow senior economist Jeff Tucker said in the report. “These Sun Belt destinations are migration magnets thanks to relatively affordable, family-sized homes, booming economies and sunny weather.
“Record-low mortgage rates and the increased demand for living space, coupled with a surge of millennials buying their first homes, will keep the pressure on home prices there for the foreseeable future.”
Other cities to make the cut include Phoenix, Nashville, Tampa, Fla., and Denver. Values in those areas are expected to rise faster than the national average, analysts predict.
Zillow made its selections of the top markets based on input from a panel of U.S. real estate experts and economists. More than 50% of the professionals polled said they expect D-FW’s home market to outperform the national average this year.
Only 32% said the same about Houston, which ranked 12th.
North Texas ended 2020 with a record of more than 119,000 single-family homes sold by area real estate agents — a 10% rise from 2019 sales. Median prices in the area were 7% higher last year than in 2019.
Zillow analysts say an improved economic outlook due to coronavirus vaccines and strong demand from millennial homebuyers will drive this year’s nationwide home market.
Higher prices and a lack of inventory are a drag on the sector.
“While sustained tailwinds are forecasted this year across most of the shifting U.S. housing landscape, certain densely populated markets with high-priced real estate face prevailing headwinds,” said Terry Loebs, founder of Pulsenomics, which worked with Zillow to produce the ranking.
“Accordingly, home value appreciation rates within coastal cities such as New York, San Francisco and Los Angeles are projected to see a downshift from last year’s remarkable levels.”
Information provided by Dallas News