Dr Yun & Nest’s 2020 Summit

We had our annual Nest Summit this week, virtually, and it was a fantastic success. We packed a lot into just under four hours. One of our guests was Jesse Cole of the Savannah Bananas baseball team; I’m leaving his part out of this post as we’re going to have him as a guest on Sweat the Details podcast soon.

Dr. Lawrence Yun from the National Association of Realtors joined us and shared thoughts and insights about 2020, and some predictions about 2021. You can download Dr. Yun’s presentation here.

Short takeaways, with some of my own commentary

Inventory nationwide, and in the Charlottesville area real estate market, is low, and will continue to be low into 2021
We need more homes; new construction, and more dense construction, are ways to get those homes.
New construction costs and materials continue to increase in price; naturally, this leads to increased costs to buyers
I think that some areas of the country are going to be forever changed as people choose where to live based on where they want to live rather than basing that choice on proximity to work
Internet – actual, hard-wired internet is more critical than ever; Albemarle County needs to get it together and expand this infrastructure. The only company currently doing this locally (that I know of) is Firefly, in conjunction with Central Virginia Electric Coop.
Commercial real estate is a big unknown; what will happen to downtowns if that critical employment mass is no longer there?
Mortgage rates are low.
Job market is imbalanced; if you have a good job and can work from home: you’re better than those who cannot.
- Relevant FP story: The World’s First Affluence Recession – The pandemic is making Americans poor—precisely because of the way they were rich.
The Biden Presidency is going to be facing some remarkable challenges, one of which is mortgage forbearance.

What Does this Mean to Charlottesville area buyers and sellers?

As my friend and colleague in the New River Valley says, it depends.

If you’re looking to buy or sell a home in the City of Charlottesville or immediate urban ring of Albemarle County, expect inventory to be very low, demand to remain high.
If you’re in either of those categories, start the learning and preparation process now. Buyers, start here. Sellers, here.
If you’re looking for land, that’s been in fairly high demand.
If you’re looking for new construction, expect options to be both limited in design and expansive in availability.
If you’re looking for a home that is on a slightly larger lot in a great location, maybe expect to do some renovations, and maybe more than you expected.

It depends on what you’re looking to accomplish, whether buying or selling a home.