Charlotte luxury home prices increase gently
: I have bought property in other states, and my closing was not conducted by a real estate attorney. Why does North Carolina require that an attorney conduct a real estate closing?
A lakefront house at 16520 Belle Isle Drive in Cornelius sold for $1.42 million. The selling agent was Sandy Reynolds with ReMax. The land underneath sold for $196,000 in 1996
Resale home prices continue to soar across the country, with cities like Seattle, Portland, Dallas and Denver reporting huge year over year gains. Seattle had a 12.9percentyear-over-year price increase, followed by Portland with 9.3 percent, and Dallas with an 8.4percent increaseand Denver coming in at 8.2 percent. Charlotte came in at a more reasonable, non-spikey 6.1 percent, more in keeping with the region’s history of slower, steadier increases and fewer declines. The data measures price increases in the 12 months ending in April of this year vs. the 12 months that ended in March. Sevenc itiesout of 20 that are measured reported greater price increases in the year ending April 2017 vs. the year ending March 2017.The rate of increase—monumental by most accounts—appears to be slowing. That’s not a bad thing.“Moderate steady growth createsa more stable and predictable market. While double-digit increases may seem positive for the short term, continued modest growth is far more sustainable for the long-term,” said Lance Carlyle, of Cornelius-based Carlyle Properties. Generally speaking, housing prices in the higher tiers are more stable than those in the lower tiers where prices can be volatile. Luxury prices beat to a somewhat different drummer. In Charlotte and the Golden Crescent, there’s nothing too crazy, virtually no $30 million, $20 million or $10 million homes. In fact, $5 million is quite a stretch. Luxury home prices rose 4.2 percent in the first quarter of 2017 compared to last year, to an average of
A lakefront home down Jetton Road has sold for $1.45 million after being listed at $1.5 million by Dixie Dean of Allen Tate. The house at 15729 Jetton was on the market 49 days
$1.65 million, according toRedfin tinue rising faster than inflation, could whichtracks home sales across the this be a bubblethat’s ready to pop? David M. Blitzer, managing director country. Itdefines a home as luxury if it is among the top 5 percent most and chairof the Index Committee at expensive homes sold in the city in S&P Dow Jones Indices, said demand is simply exceeding supply and financeach quarter. Prices in the bottom 95 percent of ing is available. “There is nothing right now to keep the market outperformed the luxury market for the ninth consecutive quar- prices from going up. The increase in ter. The average price for non-luxury real, or inflation-adjusted, home prices homes was $307,000, up 7 percent in the last three years shows that demand is rising. At the same time, the compared to a year earlier. While the number of homes for sale supply of homes has barely kept pace remains stubbornly low in many cities with demand and the inventory of new around the country, luxury buyers had or existing homes for sale shrunk to more to choose from. The supply of only a four-month supply,” he said. Mortgage rates remain close to 4 homes for sale priced at or above $1 million ticked up 1 percent in the first percentand affordability is not a sigquarter, compared to a year earlier, nificant issue. The average gain across all 20 cities while the number of homes priced at or above $5 million jumped 15 percent, was 5.7 percent in April, down from 5.9 percent in March. according to Redfin. “The luxury market has seen sustained growth for the last few years, specifically waterfront properties. This growth has been at a reasonable level with no indication of slowing,” Carlyle said. As home prices con- Sources: S&P Dow Jones Indices and CoreLogic Data through April 2017.
Home prices on the rise
: Many aspects of real estate law are State specific. North Carolina has a somewhat unique system that involves a real estate attorney searching and opining on the state of the property’s title to an independent title insurance company or agency. The title insurance company then issues the title insurance commitment or policy, while the real estate attorney conducts the closing, handling of funds, and recording of the documents. A few advantages of the North Carolina JACKSON approved attorney system are: 1. Cost – Involvement of an attorney in the process keeps the overall cost of the transaction down 2. Legal Representation – Attorneys are able to provide legal advice during the closing process 3. Oversight of Attorneys - Attorneys are closely regulated by the State Bar and General Statutes, and most carry malpractice insurance. 4. Oversight of Attorney Trust Accounts - Attorneys’ trust accounts are regulated by both the State Bar and the North Carolina Good Funds Settlement Act These are just a sample of the many benefits to closing your real estate transaction with an approved real estate attorney.
Contact Patrick M. Jackson President, Master Title Agency 8640 University Executive Park Dr., Charlotte
The July 2017 issue of Business Today