A very dear friend of Doug’s, a giant in Brunswick County, said to him last week that Carolina Plantations should enjoy unparalleled growth for many years. His family were earlier settlers on one of our barrier islands, and he and his real estate empire focus on beach business. He mentioned this because beach real estate has slowed quite a bit due to a lack of inventory. At the same time, hundreds of thousands of people are doing everything they can to escape colder climates and higher-tax states and find their place in the sun. We could not argue his point.
Covid, which hopefully will be under control soon, has merely accelerated the retirement plans of millions of Americans. Why live in cold weather when your kids have moved out of state, taxes only seem to be increasing as winters continue to be too long and too cold, and your homes can sell for more now than possibly ever?
A couple of weeks ago, Doug watched Chairman Powell of the Fed speak about the US’s chances of experiencing another 2008 debacle. Check out the 60 minutes interview.
He indicated that many factors are in place today that would severely decrease the chances of ever happening again. The first was changing predatory lending habits of lenders, which we can attest to. Years back, you might recall “No Doc Loans,” which allowed a person to walk in off the street and, without any documentation, secure a loan. Is anyone surprised that 2008 happened? Oh, my goodness, what were we thinking?! Oh, and one more thing Chairman Powell shared is that he does not see inflation on his radar. Chairman Powell believes the Fed has that well under control through the end of 2021 and beyond.
So, barring an economic meltdown again any time soon coupled with loads of Baby Boomers retiring and looking for a more economically feasible lifestyle, Coastal North Carolina is smack in the crosshairs of untold numbers of soon to retire Americans. And according to Wharton’s Professor Jeremy Siegal, stocks could post yet another 30-40% gain before any kind of a pullback. Check out some tips for buying a home during a pandemic here.
On a different note, a few days ago, Doug spoke with a client that said he is going to wait until fall to consider purchasing a home here on the coast. The reason, in his opinion, all this craziness with multiple offers and rising prices has got to end soon. Nope, it doesn’t. Keeping this all in perspective, while our prices have increased this past year, most of it was driven by a hopefully once-in-a-lifetime pandemic. These prices, though, have been felt in just about every market, so if you are selling your home today in Princeton, NJ for $525,000, that’s probably $50,000 more than you would have sold it for last summer, right?
Coastal North Carolina is still VERY affordable. We have inventory, and if we run lean, our builders build it because we are truly blessed to have an abundant inventory of land! Approximately 70% of our clients build new homes here because:
- They can!!
- They get to select all their floorplans, colors, flooring, countertops, appliances, etc.
- It fits into their timeframes with regards to retiring, selling, and moving.
So, when you consider Covid Flight (to the burbs), people retiring earlier than anticipated historic low-interest rates for mortgages, millions of Baby Boomers have yet to retire. A stable/growing economy, Carolina Plantations is expecting the real estate market here in Coastal North Carolina to stay very strong for the next 24-36 months. And as the adage goes, if you snooze, you lose. If you’re ready to start your search for your home to retire to the Coast of North Carolina, give us a call today!