As the COVID-19 pandemic brought world markets to a standstill and forced millions of people out of the workforce earlier this year, many industries across the economy were left struggling.
In the world of social distancing and stay-at-home orders, non-essential businesses that managed to stay open took deep cuts in revenue, and damage to some parts of the economy will likely be permanent.
One industry that has largely dodged the COVID-19 slump has been real estate, where the virus is driving an exodus from urban centers to rural and suburban communities.
“We were really kind of surprised, because all through the whole COVID thing, instead of stopping, we were incredibly increasing in business,” said John Becker, owner and broker at Bald Head Realty in Franklin. “Real estate was deemed an essential business, so we were able to keep the doors open, wear masks and stuff like that. The phone was just ringing off the hook with people wanting to move out to those congested areas, and I think that was the impetus for what’s happening.”
For the past six months, agencies across the county have been inundated with offers and requests for listings. While recessions generally depress real estate sales due to declines in consumer confidence, fears over COVID-19 and recent unrest in major cities has spurred greater demand for Macon County homes.
“I think a lot of them want to move out of the big cities. They don’t want their kids to grow up there,” said June Tassillo, co-owner and broker at Re/Max Elite Realty. “Here, [they like] the low taxes, the weather and how beautiful it is.”
From Jan. 1 to Sept. 8 of 2019, 467 homes changed hands in Macon County (excluding Highlands) with a median sale price of $165,000 and an average time on the market of 131 days, according to the Carolina Smokies Association of Realtors. During the same period this year, agents have sold 498 homes with a median price of $176,000 and an average of 120 days on the market.
Between the coronavirus, rioting in major cities, and low mortgage interest rates, the current climate seems to be a perfect storm for a seller’s market.
“Some of my buyers are able to buy because they still have decent employment, and because interest rates are low, it’s more affordable for them to get a starter home,” said Re/Max co-owner and broker Teresa Murray.
With so many homebuyers fleeing cities in favor of Western North Carolina’s natural beauty and small-town feel, realtors said they have never seen such demand for Macon County homes, and have heard similar reports from other agents across the Southeast.
Demand for local homes has been so great, in fact, that Becker recently listed his own home out of curiosity, and the results surprised even him.
“I’m watching this trend, and I said ‘You know, I’ll throw my house up for sale, what the heck,’” he said. “So I put it up, and I didn’t go by my own counsel, of course, because I’m a guy. I put it up 32 [thousand dollars] high, and in 24 hours I had five offers on it higher than what I listed it for. I said ‘this will never appraise,’ and it did.”
In the 30 days between Aug. 9 and Sept. 9, Bald Head Realty’s website garnered 342,000 views. Many local sellers have gotten multiple offers within a day of listing their homes, and everything from starter to high end homes have been in play. Although the pandemic is creating a perfect storm for local sellers, realtors said the appeal of Macon County is etched in stone.
“I think as far as June and I, Becky [Ramey] and our agents here at Re/Max, we feel pretty optimistic about it, and we just want to help people,” said Murray. “Franklin has always been a destination people wanted to come to ever since I’ve been in business about 15 years ago. … It’s always been a destination, and I don’t think that will change even if it slows down.”
While the pandemic has driven a boom for sellers, its effects on current homeowners out of work and unable to pay their bills remain to be seen.