Fancy digs on Lola Circle: Dixie Dean listing for $3.8 million
May 8. The Charlotte housing market is hot compared to other markets around the country. While the numbers regionally are strong, close-in neighborhoods and those with amenities like greenways and access to rail are the hottest, according to economists and Realtors.
High-end suburbs, like waterfront in Cornelius, as well as Robbins Park, are strong too.
“Median sales prices are holding steady for now in the higher range when compared to last year, but as the inventory continues to shrink in the upper end, we should see an increase in median sales prices in the months ahead,” says Abigail Jennings, president of Cornelius-based Lake Norman Realty.
Stephen Billings, an associate professor of economics at UNC-Charlotte, is also co-director of the Center for Real Estate. He sees the boom in Charlotte residential continuing for at least a couple of years, with no bubble in sight.
Home prices are fast approach where they were before the real estate crash that got under way in earnest here in 2008. Highly desirable sub-markets, which are already approaching build-out, will have the greatest appreciation, Billings said.
“The population growth expectations are very high. As we see population increases will see more homes being built, causing more variation at the sub-market level. There is a limited ability to build more homes close-in, where there will be more price increases. As demand goes up, we will see prices going up because of limited sites available as well as more restrictions,” Billings said.
High-end sub-markets in Lake Norman and gated communities are hot.
“The market is strong right now with all price ranges enjoying healthy growth in 2015. The $500,000 to $1 million range is especially hot this Spring. We’re seeing properly priced and well-maintained homes going under contract very quickly in this range,” Jennings said.
There’s always concern about interest rates climbing, but so far that hasn’t stymied the market.
Wells Fargo senior economist Mark Vitner says the market is being driven by both tight supply and rapid growth. “Development has been slow to get back on track and there is not a lot of raw land left for development. If it is available it may not be cost effective to justify the purchase of the land, so builders are concentrating on infill. They are building fewer homes and they tend to be more pricey. This recovery has seen strong for asset prices as opposed to income. The lake has done better, as well as Myers Park and Eastover, Vitner says.
