North Carolina Real Estate Agents Mixed on Sales After Coronavirus

By
Property Manager with personal

Anyone involved in North Carolina real estate in 2008 knows that it was a terrible year. Homes sat on the market, prices dropped, lending was tight and it just wasn't good.

What should we expect after COVID-19? Anyone's guess!

What is going to happen after COVID-19 is anyone's guess. Nobody knows what is going to happen in an hour from now, let alone in 2 months from now, or how long this evil virus will drag on. I personally hope all is back to normal by summer, but, the truth is we could be dealing with this in 6, 9, 12, 18, 24 months from now.

I'm just an investor but nothing drives me more crazy than hearing an agent tell me how good the market is going to be doing in a few months from now and "now is the time to buy!" Really? The world's top epidemiologists and scientists can't agree, however many say we'll have to practice social distancing until 2021 or 2022. 

Current trends as of April 2020

I closely monitor home sales in Chatham County NC and on the coast. I own multiple homes in Pittsboro and am seeking to purchase a house along the Atlantic maybe in Onslow or Pender County.

Houses hitting the market in Pittsboro have instantly gone into a bidding war for years. Sellers agents list homes on Friday and go over all of the juicy offers on Monday with their clients. This has stopped. There was zero inventory in the county. Now, there is. Houses go up for sale, then the price drops in 2 weeks. Occupied homes aren't selling as sellers are afraid of infection, although that hasn't stopped the buyers - after all - real estate is an essential business under the current North Carolina Stay at Home Order.

On March 17, 2020, the day NC announced State of Emergency, real estate prices in Topsail Island began dropping fast. Overnight, many houses on the coast slashed 20% off the asking price. Many others disappeared from the market.

What local agents say:

Raleigh agent Ginger Vereen says that there are 5 reasons the Coronavirus pandemic is unlike 2008. She says there is not an excess of inventory, mortgage standards are better, prices have been steadily rising at a healthy pace, most homes are affordable and many homeowners have equity. Chatham County real estate broker Eric Andrews says on his YouTube channel that he suspects, if all goes well, we'll see a 20% - 30% price drop on residential in 6 - 9 months from now. He does, however, point out that sales themselves could change. People may gravitate towards local / community agents, and virtual tours and video especially will likely become more popular.

What's your prediction?

I am personally sitting tight, waiting for this to play out. I do hope and pray the virus goes away soon. Hopefully mortgages are protected and inventory levels remain steady and buyers spring into action after this passes.

Feel free to comment below with your predictions..

Comments (1)

Sally Crane
WMS - Unity, WI
Woodland appraisal support.

Thanks for the update, all the best to you as you get many of these properties listed and sold.

Sally

Apr 07, 2020 11:15 PM