Welcome home to the mountains for the 2021 season!! We cannot wait to see our friends and shake your hands and give hugs to those who are comfortable with socializing. What a year we have endured, but we are grateful to be on the cusp of a wonderful season.
Home sales in 2020 will be analyzed for generations as the most unexpected outcome resulting from the pandemic debacle. Being told to “stay home” redefined the definition of home forever. No longer just a place to sleep after long days in the office or shuffling a harried social schedule, an abode became the center of the universe where one worked, cooked, exercised, communicated via internet, socialized, entertained and educated children. After months of being forced to “stay home,” priorities shifted not only for the specific criteria of a home, but also the awareness where one wanted to be while being home. Suddenly, vacation or second home resort communities became a coveted destination for longer stays or even year-round living. Among the areas where this trend significantly materialized was the Highlands/Cashiers Plateau in western North Carolina.
Across the country, housing prices have soared. The national Case-Shiller index is up 11.2% in the past twelve months, the largest gain since 2005-06. The primary problem in all markets is lack of inventory. Based on population growth and scrappage (voluntary knockdowns, fires, floods, hurricanes, tornadoes, etc.), we would normally expect housing starts of 1.5 million per year. But in the last twenty years, builders have averaged only 1.256 million per year. Thus, single-family existing home inventories are at rock bottom levels.
The market is intense. Buyers are frustrated and rather frantic. Multiple offers and back-up contracts are now the norm instead of the anomaly. Is this a bubble? Will the housing boom continue? Based on the events of the past decade and particularly the Covid impact, home prices are likely to continue to rise. With the Fed so easy on interest rates and the stock of housing constrained, the housing boom is poised to continue.
Thank you for your friendship and support. We are here to help in any way we can with questions regarding the market or with questions specific to your home.
We can’t wait to see you soon!!