The Carolinas luxury market has exploded!
For years, higher end properties were more difficult to sell. At any given time, there were quite a few properties from which to choose around Lake Norman. Covid-19 has impacted that dramatically and Lake properties are flying off the proverbial shelves!
Here is a look at the Median Days on Market. Properties are often going under contract within the first days of being on the market, and often before they even hit the market – as coming-soon.
Another data look shows the listing volume. This one is interesting because it quite clearly shows what we are feeling. Not enough homes on the market. Right now I have multiple buyers interested in lake homes. But, they are tough to find and competition is fierce! We need more listings!
What is driving listings down? Here are the primary reasons:
- Sellers are not anxious to have people in their homes because of Covid.
- Unless a seller has a place to go, they don’t want to sell. This is a vicious cycle! Lots of people are considering selling, but they are having trouble locking down the home they want to buy.
- People are now buying second homes. Usually when people buy a home, that also frees up a home. Not true in this market! City dwellers and people from around the country are buying NC lake homes, mountain homes or other “escapes.”
After the flu pandemic of 1918 mudrooms became popular as people wanted a place to drop their dirty stuff and wash up before entering their home. Those have remained popular for 100 years! With Covid, some home preferences have changed and it looks like they’ll stick around for a while. Here are a few of the biggest changes:
People want an awesome home office space. Because we have spent so much time on Zoom from home, people don’t want to work at a kitchen counter or in a flex/ combo space. They want a place where they can “go” to work. Maybe businesses will return to full in-person jobs, but it seems more likely that working from home will become increasingly common.
Incredible outdoor space is definitely high on the list of buyer preferences as people spend more time at home.
Room to play, including extra land is more desirable than ever.
Kitchens have always been the heart of the home. But these days people in the luxury market not only want a great kitchen, but one with a view. Doing dishes doesn’t seem so bad when it is in a spot like this:
Why are people buying second homes at such a fast clip?
There are a lot of ways to invest. Real estate is a great one. Andrew Carnegie, at one point one of the wealthiest men in America said nearly 100 years ago, “90% of all millionaires become so through owning real estate.” 90% is a big number.
In the past, many investors bought investment property that wasn’t for personal enjoyment. Now, many are realizing they can have their cake and eat it too! Get that lake house and build memories while growing your investment portfolio. Growing wealth sure looks like more fun with those views above!
The law of supply and demand is a well known economic principle. With limited supply, prices will increase. We are also seeing that in this market related to the current inventory.
However, thinking outside of the pandemic and its effects, using the laws of supply and demand, real estate is a great investment. Humans have 3 main basic needs. Food, water and shelter. Shelter is a basic need. Our population is growing and our land is not. People will continue to spend an increasing amount on real estate in the future. Mark Twain said, “Buy real estate, they stopped making it.”
Did you ever look at a property and thought it was too expensive so you passed on it. Now, when you think about it you wish you’d bought it?
FDR said, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full and managed with reasonable care, it is about the safest investment in the world.”
I love how many are catching on to what other savvy investors had already figured out: meeting their financial goals with an investment they ENJOY! Now that’s smart living.