North Carolina moved to Phase 2.5 Re-Opening on September 4… Implications for Real Estate

 Governor Roy Cooper has announced that he would sign an executive order moving North Carolina slowly closer to re-opening, as the COVID-19 crisis drags on into the fall of 2020.  On September 4, NC will move to “Phase 2.5,” whereby mask wearing and social distancing will still be emphasized.  The State’s trend for COVID-19 like illness continues in decline, trajectory of lab confirmed cases remains stable, and hospitalizations for COVID-like illnesses continues to decline.   

 

Phase 2.5 will have the following practical consequences for North Carolina:

 

·         Permitted mass gatherings will increase from Phase 2 limits of 10 to Phase 2.5 limits of 25 indoors, and from 25 to 50 people outdoors.

·         Playgrounds may now open.

·         Museums and aquariums my re-open at 50% capacity.

·         Gyms and indoor exercise and recreation facilities may re-open at 30% capacity—this includes bowling alleys, skating rinks, indoor basketball courts, martial arts and yoga studios, indoor rock climbing facilities, etc.

·         Movie theaters, bars, nightclubs, and other indoor entertainment facilities will remain closed.

·         Mass gathering limits remain in effect for large venue.

 

Real estate services had already been deemed “essential” under Phase 2, so the real estate market in North Carolina—particularly in the Charlotte metropolitan area—had already begun to show strong signs of life.  Of course, all such activity is subject to general COVID-19 guidelines for things like mask-wearing and social distancing.  Low housing inventory and historically low mortgage interest rates have further strengthened the real estate market in the State.

 

Phase 2.5 appears to be a small, cautious step toward a return to normalcy; and it is hoped that as trends for COVID-19 infection and hospitalization remain stable or in decline, North Carolina can chart a more direct and rapid course toward a return to business as usual.  Fortunately for homeowners and investors, the real estate market in the State remains very strong and vibrant; and it shows no signs of weakening.  This has caused some property owners to consider the sale of property into a rising market, cashing out large gains that may have accumulated between 2011 or so and today.  If a potential property seller is considering “downsizing” or otherwise moving on to the next home or investment, there has probably never been a better time to put a home on the market—continuing concerns over COVID-19 notwithstanding.