When there is an interesting occurrence in the Highlands, NC real estate market, I investigate and probe to see if the phenomenon is a harbinger of things to come or if it is a simple outlier.
Last week, we received a call from a gentleman who had just put his house in Atlanta under contract. He noted he was ready to make a purchase in the Highlands area. (At that point, there was nothing extraordinary about his situation.) His story, however, rapidly became intriguing when he said his house wasn’t even on the market (he was just approached by a Buyer in hopes he would sell), and that he would soon have approximately $1M in cash from the sale to invest in our market.
Back in the boon times of the real estate market, such occurrences were commonplace. Post-market crash, however, such stories had disappeared.
So, I started doing some research into three of our classic, feeder markets: Atlanta, Charlotte, and Naples. What I found was fascinating!
Residential contracts for future construction in the metro Atlanta area rose 48% in February of this year. Residential closings in Charlotte jumped 24.9% in March. In Naples, median home prices increased 17%, and pending and closed sales increased in the double-digit range in the $300K-$500K and $1M-$2M categories. Inventory is down across each of these markets, creating scenarios as the one I described above, as well as pressure on prices.
What does this mean for the Highlands-Cashiers real estate market?
My prediction is that we will see a similar surge in our activity (we are already seeing the beginnings of it), and that by fall, the increase will be realized across all price points and market niches. Our feeder markets often represent what I refer to as the “lead domino” for our market, and once the dominos begin moving in those areas, we see the impact positively rippling through the Highlands-Cashiers market.
Smart pricing remains as critical as ever, however. Our investors are value driven and are extraordinarily market savvy. Stay in line with market values, or you will run the risk of being completely ignored by the market. Begin considering your own next move and/or investment once you sell, as that time is growing ever near.