How has the pandemic affected the shortage of supply in new listings?

Pre-pandemic, we were experiencing a shortage of housing supply, particularly in medium and low-income neighborhoods. Interestingly, this trend has persisted, but there’s been an acceleration in demand for higher-end properties. A notable factor contributing to this surge is the relocation of companies and executives to Charlotte. With lower interest rate mortgages, housing prices continue to rise. It’s a perfect storm driving up real estate prices, but with the pandemic gradually easing, we anticipate seeing more supply entering the market.

Which areas have witnessed the most attractiveness or demand?

Mecklenburg County has always been an attractive area, but the demand has been surging across the Carolinas. Regions like Rock Hill and Lancaster County are experiencing significant growth, but Mecklenburg County is notably outperforming. Within the Charlotte Metropolitan Statistical Area (MSA), nearly every area has benefited from this increased demand. People are heavily investing in their homes now, setting up dedicated offices and acquiring new equipment to facilitate remote work. The trend towards working from home seems likely to persist, especially since remote work has proven to be as productive as office work. This trend holds significance, particularly when safety is ensured, allowing for a more flexible lifestyle. As people continue investing in their home workspaces, it’s clear that the demand for dedicated home office spaces will persist. Residential constructions and renovations will likely emphasize the need for distinct work-from-home areas while maintaining a separation between work and personal spaces. This trend will likely remain a significant priority in future home design and construction.

How have real estate prices been affected by these shifts in demand and the investment in properties?

The heightened demand, particularly in Mecklenburg County, has bolstered real estate prices across the board. The scarcity of listings in the market, combined with the influx of corporate entities and professionals, has led to a continuous uptick in property values. This trend has been further fueled by the favorable mortgage rates, contributing to the overall increase in housing prices. However, as the pandemic gradually eases, we anticipate a shift in the supply-demand equilibrium, which might temper the rapid escalation of prices we’ve observed lately.