Many of us who started out 2020 with the hope of a shining investment in real estate have been asking the same questions: is 2020 still a good year to invest in real estate? What trends will rule the year of the global pandemic? Should I go ahead with my plans of selling my house in Fayetteville, North Carolina? Should I opt for the services of a professional and experienced realtor or should I go ahead on my own, without any expert guidance and aid?
These are all valid questions, especially in the wake of the hit that the real estate industry has sustained this year. After all, the year began with a possible nuclear war between the U.S. and Iran, which was expected to badly affect the housing market. Thankfully, nothing terrible happened. But then, the virus arrived.
Regardless of all the other trends that will rule the roost in 2020’s real estate market, our first and foremost concern remains the virus: how the housing market has been affected, and how it will recover.
The Impact of the Pandemic on the Real Estate Market in North Carolina
According to Forbes, the effect of the virus on the real estate market is bad, and is expected to get worse before it will get better. The experts at Forbes also contend that the duration of the lockdown will directly affect the market—and we are inclined to agree.
The lockdown situation in North Carolina isn’t like those other states which are softening restrictions—the limitations on people in North Carolina are supposed to remain unchanged. And it has continued for long enough to cause damage.
A study conducted by Zillow shows that home sales have dropped during the pandemic—but home prices haven’t fluctuated. As far as North Carolina is concerned, withdrawn listings saw a sharp rise —by as much as 288%.
This number continued to rise, reaching 293% by the second week of March and 656% by the third week. If you are, however, looking for real estate listings in Fayetteville and North Carolina, you can check out these features listings which are still functioning quite well.
Pending house listings also fell. All of this is particularly dire for the real estate market in Fayetteville and to real estate investment hopefuls, especially since the market was doing so well before the pandemic hit.
There are, however, real estate trends to still look out for—and if you play your cards right, you can recover quickly, efficiently, and smartly.
Housing Demand is Not Dying
Although demand might have fallen some thanks to this pandemic, it isn’t dead. In fact, demand for housing was high before the pandemic hit, and is expected to remain high. In North Carolina in particular, there’s a lot that the existing real estate industry can rejoice in. Given the high demand and low supply, anything that you have to offer or sell will be highly valuable. You’re expected to rope in profits.
Moreover, the millennial population is in peak home buying season. More of these young people with disposable income are moving out, with 32% of them buying home for space whereas 34% of them buying homes for family. Either way, it’s good news for the real estate industry.
Construction and Supply
As we have already mentioned, the supply curve in North Carolina, specifically, isn’t all that great. There’s a shortage of housing available, affordability is kind of out of the question, and construction prices are expected to rise once the industry starts functioning again.
While construction of new homes has taken a hit, we can expect construction prices to either stay stable or go up after a hiatus as long as this one. It won’t be all too expensive, however, especially for the new housing market, since oil prices have fallen in the country.
The thing to focus on here is the chronic shortage of housing and what you can do to make up for this lack. Investing in new housing is a good idea right about now, as the pandemic paranoia has given many people a reason to look for their own roofs in order to better prepare for times like this.
Since the coronavirus seems to be giving everyone a lesson in social and physical distancing, personal space has become an even more important part of the lives of millennials—who are undoubtedly your target audience henceforth.
The Rise of the Millennial
We have been throwing the word “millennial” a lot—and for good reason. It’s millennials who have stepped into their prime spending years, and they’ll be looking for everything from affordable to energy-efficient housing. It’s important, above all else, to understand your customer and what they want from your real estate proposition.
The millennial population will be looking for eco-friendly housing in friendly neighborhoods, close to schools and colleges, and will generally be interested in making a sound investment. This generation is not like the older generation—these new-age customers of yours will come seeking a property that is well-built, secure, affordable, and can pay off in the longer term.
Surveys have proved that real estate is a top priority among millennial populations, who prefer it over the stock market and even cryptocurrency. As of 2019, millennials were buying one-third of all the homes being sold in the country—over a million units. If you are willing to take the high-risk and high-reward investment route, all the better—because high-income millennials are more than interested in buying luxury homes.
Construct or renovate your properties to their taste, and you will succeed in attracting the attention of the right people at the right time. Appeal to them through the right channels: remember that this is a generation that would rather everything were done online, pandemic or not. Politeness, green homes and a feeling of responsibility toward the environment—all of these are elements you can touch upon and use to your advantage in order to seduce your millennial target audience.
Don’t forget that the millennial population in North Carolina is expected to increase rapidly by 2032—and you can start pulling the ropes today. Invest in real estate with the right audience in mind.
Working with a Real Estate Broker in Fayetteville and Fort Bragg
Working under the banner of Fathom real estate, Philip Fehler has been working in the real estate industry for many years, and has extensive knowledge in terms of investments, buying and selling houses in Fayetteville, military housing in Fort Bragg, and more. As one of the first agent-run real estate brokerages in the country, Philip Fehler, Broker of Fathom Realty, has a vast network for expert realtors in North Carolina, and can cater to all your real estate needs easily.
For more information, you can get in touch with Philip Fehler online or give him a call at (910) 381-1341. The team at Philip Fehler Fathom Realty provides free consultation and extends real estate services in Fayetteville, North Carolina—so don’t hesitate in reaching out.
Start your real estate investment plans with expert guidance back you!