2021 Real Estate Forecasts for Texas Home Sellers & Buyers
The Lone Star State has long been known as a booming economic powerhouse, a land of creativity, pioneers, and self-sufficient individuals, as well as a resource-rich landscape that offers beauty and security for its residents. As John Steinback famously wrote, “Texas is a state of mind” and argued that the state possessed a kind of mystique and a passionate cohesiveness that made the land an inspiring place to live. That still holds today, as statistics show that hundreds of thousands of people have flocked to the state after experiencing a not-so-inspiring year in their respective states. When people move, of course, demographics, populations, and real estate are directly impacted. So what is the recent forecast for Texas real estate and where does El Paso — far off to the Western tip — stand on all of this?
Reasons Why People are Packing Their U-Hauls & Heading to Texas
The phrase “Don’t California My Texas” is making the rounds. So much so that Governor Abbot himself has caught wind of it and made a slight reference to the fact that many from The Golden State have decided to move to Texas. According to some reports, up to 80,000 people made the pilgrimage in 2019 alone. Before the pandemic hit, Texas was already a top state for new job creation numbers. In 2019, job growth averaged 170,000 jobs per month.
Four reasons to move to Texas:
#1 Strong Economy: The state’s economy is no one-trick pony. Texas is a state that thrives on big industry and small startups and tech companies breaking ground. It is the world’s 9th largest economy.
#2 No state tax: Unlike California or its neighboring state of New Mexico, Texas does not have a state tax.
#3 Business-friendly state: Many small business owners find it easier to start and operate a business in the state. Fewer regulations and more incentives keep people motivated for starting up their businesses here.
#4 Diversity and beauty: From the desert landscapes of El Paso to the beaches of Galveston, Texas, the state has a lot of diversity in its landscapes, including deserts to humid and forested areas. The state has great year-round weather and plenty of outdoor recreation and areas to explore.
The Housing Boom in an Unprecedented Year in El Paso
According to the El Paso Builders Association, the Sun City saw a surge of real estate transactions during the year 2020. Several factors played into this including low interest rates, demand for single-family homes, and lockdowns driving people to search for better dwelling space.
As reported by the El Paso Herald-Post, homes in the city sold at an average of $177,000 in 2020— a 9% increase over 2019. These numbers surprised many as the country seemed to head into recession, but hungry buyers with steady income and determination were in the midst of a bidding war for the city’s priced inventory.
Why Selling Your Home in El Paso Looks Promising
It was pretty clear early in the summer of 2020 that El Paso was experiencing a strong seller’s market. Inventory in the city was low, but the buying potential grew ferociously, especially among millennials and high-income earners. Many predict that 2021 will continue to have a strong seller’s market as home values rise. As recently as April of 2021, local news reports were drawing attention to the fact that many El Paso families were taking steps towards the American Dream of homeownership.
The year 2021 might be your best time to sell because:
- There is high interest in single-family homes. People previously renting have a newfound interest in finding their own homes.
- Less time on the market: If you want to sell your home quickly and move on, now is the time to do it.
- Multiple offers: If you put your home on the market today, it is quite likely that you’ll get multiple offers on your home.
- People relocating and looking for lower costs of living. With the work-from-home models here to stay, many people have realized that they can live in a smaller and less crowded community for a much more reasonable price.
- Because of low interest rates, people are willing to spend more. This means that homes in the higher price range are equally as competitive.
Find a Home Selling Team That Delivers on Their Promises
So as other states continue to see downfalls and consequences from pandemic policies, many will choose bustling states like Texas to find their new home. If you are a homeowner looking to sell your home soon, this is the time to speak to a real estate agent that can provide in-depth analysis and insights into the El Paso housing market. From staging your home to finding the best potential buyers, or getting the best asking price, a professional team is there to help.
Regardless of when you choose to sell, always trust a professional home selling team that knows the local market inside out. Ready to sell? Considering a move? Call Brian Burds today.