How would you summarize the state of Charlotte’s residential market?

What we’ve observed in Charlotte’s residential market is a consistent pattern where the same types of homes traded prior to the pandemic are still being bought and sold during this time. There might have been a slight pause in the market at the onset of the pandemic, but subsequently, July and August marked record-breaking months. However, the ongoing challenge the market faces is the persisting lack of inventory. Understanding inventory requires acknowledging the significant influx of individuals relocating to Charlotte.

Following the recession in 2008-2009, numerous people lost their homes, impacting both the housing and construction industries in a profound way. Medium-sized and smaller builders faced hardships during this time, resulting in a scarcity of new constructions. Importantly, from 2010 until now, household growth consistently outpaced construction on a national scale. Charlotte has emerged as an attractive destination for migrants, drawing individuals from the Northeast and Atlanta. Compared to these regions, the cost of living in Charlotte is more favorable, enabling newcomers to have higher purchasing power, and consequently, they are willing to pay more based on their previous living standards. However, the current imbalance between supply and demand has driven up costs, necessitating a need for increased inventory to stabilize prices.

What is your outlook for the near future?

The immediate future appears somewhat obscured, but clarity will emerge as certain factors come into play, notably herd immunity, a return to pre-pandemic unemployment rates, and stabilized inflation. However, these changes may take time to materialize, likely not before 2021. Notably, this year marks a significant milestone as five million millennials turn 30. This demographic is comprised of mortgage-ready individuals who are highly educated and equipped to make informed decisions. Contrary to past generations, these millennials have been cautious in making significant life-altering decisions, especially regarding homeownership. The impending challenge remains the limited availability of housing inventory.