Victor Ahdieh, Broker, NC/SC REALTOR® and Co-Owner of Savvy + Co. Real Estate
1.) Housing prices exploded during the pandemic. Are you concerned about a housing bubble?
With everything going on around us, I think it’s easy to get caught up in a cycle of fear and worry. Some of it may be warranted, but I think it’s important to stress that—first and foremost—I don’t think we are going to experience a bubble like the one from 2007. That being said, it’s true that today’s residential real estate market is one of the most unique we’ve ever seen. Approximately 90% of homes for sale are on the market for less than 30 days*. Combining this level of demand with 0.5 month’s supply of inventory (December 2021) translates into a robust market for 2022. Things are still going to be competitive, for sure, but I think it will start to level off in a good way toward the latter end of the year. It’s important to keep in mind that a market correction is actually not a bad thing because it will move us toward a healthier balance of supply and demand. Competing with thirty other offers is tough for buyers and puts a strain on sellers.
We are still in a seller’s market in the Charlotte region, but there is hope for buyers across the board. The number of new construction homes being built is on the rise, and a shift in interest rates will help to balance the market for everyone.
2.) What predictions do you have about the housing market and house prices in the Charlotte area in the upcoming year?
Hold onto your britches! Both mortgage interest rates and housing prices will increase. Prices will continue to rise, but at a slower pace than in recent years. First-time home buyers will be hit the hardest, unfortunately, but I am also hopeful there will be opportunities made available to help ease this crunch, as well as taper off the sharp appreciation spike we’ve seen these last few years, which has also priced a lot of first-time buyers out of the market. This will also mean competition may increase for a time in the lower quartile of housing price ranges.
On the opposite end of the spectrum, luxury and high end property sales will continue to see a boom throughout the year. I also predict second (and third) home purchases will continue as everyone decides how to spend the money they saved from their cancelled or delayed travel plans.
3.) What role do you see real estate investors playing in the local market?
It’s funny because I think most real estate professionals I know have kind of a love/hate relationship with investors. They are so great for our market and ensuring that Charlotte continues to grow by the leaps and bounds it has experienced over the course of the last few decades. The flip side to this story is that oftentimes this kind of growth means that certain neighborhoods start to lose some of what made them desirable and unique in the first place.
I’ve always looked forward to working with investors who are interested in Charlotte’s market overall. Investment opportunities are wonderful here, but Charlotte is my home, and I want to make sure that we are not just bringing in money but that we are making our city even better each year.
All this is to say, I think investors are going to play an even larger role in the Charlotte real estate market in 2022. I’m hopeful that, with the right kind of partnerships, we will see an overall growth in our market that trends more toward making real estate investments work for our community over time.
4.) How is Savvy + Co. Real Estate standing apart from the crowd with increased competition for home listings in a tight market?
I think it’s more important now than ever to align ourselves with professionals in every industry, whether it be law, mortgages, finance, real estate, or medicine. As we shift more and more to a gig economy, true professionals are going to be harder to come by, simply because honing your craft is something that takes a lot of time and energy.
I can honestly say that I am beyond proud to work with the agents and the talented team at Savvy + Co Real Estate. Over the course of the last few difficult years, I’ve seen all of us weather these storms together, have distant celebrations for achievements, and grieve through our losses. But the most important thing we pride ourselves on is what we do and the mark we leave on everyone we meet, especially on our clients.
This is what is going to distinguish us moving forward, because there are more Realtor®s in the U.S. than there are homes to sell. The National Association of Realtors® said “its membership reached a record-high of more than 1.5 million members in May 2021.”^^ Meanwhile, Redfin reported there were approximately 1.3 million homes for sale in the same month.
Savvy + Co Real Estate’s success didn’t come overnight. I think we have managed to withstand the test of time by creating niche markets for ourselves and promoting our technological advances alongside our customized client-centric approach. Anyone can pay to create an app. What they can’t pay to do is ensure that the agents who use the app and the support staff involved are tailoring the experience to each client’s unique needs. Company culture and our exemplary marketing has set us apart in a crowded space, and I am eternally thankful to work with such an impressive, diverse group of people.
5.) What is your best advice for potential homebuyers in the Charlotte area? How can they get their dream home?
Relationships matter more than ever right now. As I mentioned above, this is not the market for amateurs. Both buyers and sellers need help navigating the murky waters of multiple-offer situations, not to mention working through any ensuing negotiations. Sellers could be leaving a lot of money on the table by not working with a real estate professional. And, honestly? Not working with the right Realtor® could mean you don’t even get a seat at the table in the first place. It’s so important for homebuyers to work with an experienced Realtor® if they want to stand out from the pack of potential buyers. Our job is to make sure you get the home you want at the best possible terms, and that is truly one of my favorite parts of doing what I do. There aren’t many other industries where you can say you helped someone find a place to call home.
My advice? Let your mortgage professional and your Realtor® set you up for success. They are invested in you, and everyone on your team is aligned in getting you into your next home as soon as possible. Remain flexible and trust the process.
References:
*: Dr. Lawrence Yun “Residential Economic Issues & Trends Forum” Rise & Shine at the Realtor®s Conference & Expo San Diego, California November 13, 2021.
^^: “Here’s why it’s not a great time to become a real estate agent” By Zach Wasser for CNN Business June 23, 2021. https://www.cnn.com/2021/06/23/homes/more-realtors-than-homes-for-sale-feseries/index.html
