Q2 2022 Charlotte Luxury Market Report

Q2 2022

Q2 Market Report

contents July 2022

OVERALL MARKET REPORT The Charlotte luxury real estate market managed to buck the national trend, showing a slowing market that is still posting gains in comparison to last year in many areas.

COMMUNITY UPDATES SouthPark Myers Park & Eastover Lake Wylie & The Palisades Providence, Weddington & Waxhaw Ballantyne & South Carolina Center City Luxury Condos

FORECAST Headwinds Likely to Taper Luxury Closings While Demand Supports Recent Price Gains

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Charlotte Luxury Market Bucks Headwinds The Charlotte luxury real estate market managed to buck the national trend, showing a slowing market that is still posting gains in comparison to last year in many areas. Activity for the second quarter remained solid, if not quite at the frothy pace set in the second half of 2021 and early 2022.

The mid-market price segments which are more interest rate sensitive did see some slow down though it very much depends on the area. Interest in new construction and relatively attractive values prompted areas like Fort Mill, Ballantyne, The Palisades area, and Lake Wylie, to all post solid gains in sell-through in the $500,000 to $1 million range.

From a pricing standpoint, the popular $1 million to $2 million range, mirrored Lake Norman and other affluent areas of the state, by posting solid gains moving into the third quarter of the year.

The Providence Road corridor out into Union County, the upstate South Carolina area, as well as the city’s burgeoning luxury condo/townhouse market over $1 million all showed double-digit gains in sell-through over last year’s second quarter.

SOUTHPARK Limited inventory availability in the SouthPark area contributed to the southern suburbs’ strong showing in the second quarter.

Closings in SouthPark were down in all three price segments with 123 mid-market homes closing vs 138 last year, 58 in the $1 million plus range vs 69 last year, and 17 vs 24 in the high-end luxury range above $2 million including two Ivester Jackson closings above $2.5 million in Morrocroft Estates. The $1 million range ended the quarter with another 49 homes pending leaving just 22 homes on the market between $1 and $2 million in price, indicative of the still tight conditions in Charlotte’s high-demand areas.

LAST 60 DAYS

SOUTHPARK AREA Q2 HOMES SOLD & SHOWINGS

Listings SouthPark Area

222 HARGETT COURT - COTSWOLD - $1.05 M - UNDER CONTRACT 6525 FOLGER DRIVE - LANSDOWNE - $1.699 M 9008 TYNECASTLE COMMONS CT #9 - TYNECASTLE - $1.099 M - UNDER CONTRACT

Sold SouthPark

7114 OLD DAIRY LANE - MORROCROFT ESTATES - $2,687,500 8925 HEYDON HALL CIRCLE - HEYDON HALL - $1.105 M 2525 MORROCROFT LANE - VILLAGES OF MORROCROFT - $2.625 M 4602 MEMPHIAN COURT - PARK SOUTH STATION - $480,000 4142 PARK SOUTH STATION BOULEVARD - PARK SOUTH STATION - $496,000 4110 MOORLAND DRIVE - ROYDEN - $2.185 M 9016 TYNECASTLE COMMONS CT #11 - TYNECASTLE - $854,278 9005 TYNECASTLE COMMONS CT #7 - TYNECASTLE - $839,005 4033 RUTHERFORD DRIVE - BEVERLY WOODS - $760,000

MYERS PARK & EASTOVER Mirroring SouthPark, limited inventory in the city’s flagship Myers Park and Eastover communities limited closed unit sell-through compared to 2021’s second quarter. The region’s most popular price segment, the $1 million to $2 million range, saw 30 homes close in this area vs 39 last year, with another 10 homes pending, leaving just 6 homes active on the market at quarter’s end. The traditionally popular high end luxury range over $2 million, saw a similar pattern, 18 homes closing vs 26 last year, yet only 9 active on the market heading into the summer.

LAST 60 DAYS

MYERS PARK Q2 HOMES SOLD & SHOWINGS

Sold Myers Park & Eastover

1122 KINGS DRIVE - MYERS PARK - $1.2 M 2251 VERNON DRIVE - EASTOVER - $5.7 M 2326 FERNCLIFF ROAD - OLD FOXCROFT - $1.55 M

LAKE WYLIE & PALISADES Mirroring its neighboring border communities, the Lake Wylie Palisades area also saw a jump in the mid-market luxury segment just below $1 million, as 296 homes closed vs 210 in last year’s second quarter. This 80% increase continues into the third quarter with 214 pending contracts on active inventory of 111, roughly 45 days. Sales in the $1 million plus segment here spiked, doubling year over year in the second quarter, with 38 homes closing over the $1 million mark vs 18 last year. Showing momentum was mixed, increasing in the mid-market segment over last year, while the $1 million plus range dipped slightly moving into mid-summer.

LAST 60 DAYS

LAKE WYLIE & PALISADES Q2 HOMES SOLD & SHOWINGS

PROVIDENCE, WEDDINGTON & WAXHAW While the mid-market segment below $1 million in this area finally showed some signs of flattening out after two torrid years, there were still 206 closings compared to 234 last year, a strong number by almost any prior year’s results save for the past two.

The popular $1 million plus range continued its strong performance with 110 homes closing over the $1 million mark compared to 75 in last year’s second quarter, a 40% increase. The quarter also ended with 80 more homes pending in the upper range, leaving just 39 in inventory.

LAST 60 DAYS

PROVIDENCE,WEDDINGTON & WAXHAW Q2 HOMES SOLD & SHOWINGS

Listings Providence, Weddington, & Waxhaw

230 GLENMOOR DRIVE - LONGVIEW - $1.22 M 6720 CISCAYNE PLACE - MEDEARIS - $735,000 11132 COLONIAL COUNTRY LANE - PROVIDENCE COUNTRY CLUB - $1.149 M

Sold Providence, Weddington, and Waxhaw

8710 CALUMET FARMS DRIVE - PROVIDENCE DOWNS - $1.64 M 3508 MCPHERSON STREET - CURETON - $1.025 M 6440 LUNDIN LINKS LANE - PROVIDENCE COUNTRY CLUB - $955,000 811 CHAMBWOOD ROAD - WESLEY CHAPEL - $677,000 5318 PROVIDENCE COUNTRY CLUB DRIVE - PROVIDENCE COUNTRY CLUB - $1.35 M

BALLANTYNE & SOUTH CAROLINA The suburban market along the state line remained hot, riding new construction, relative attractive home prices, and available inventory, to post solid gains. The mid-market segment under $1 million surged from 157 units sold to 236 in the second quarter, with another 85 pending, while the million-dollar and upmarket jumped 40%, from 32 sales to 46. The quarter ended with 26 homes pending in this price segment and 20 remaining in active inventory while showing requests via the MLS increased 15% over last year.

LAST 60 DAYS

BALLANTYNE & SOUTH CAROLINA Q2 HOMES SOLD & SHOWINGS

Listings Ballantyne & South Carolina

79382 RIDGEHAVEN RD - WALNUT CREEK - $480,000 - SOUTH CAROLINA - UNDER CONTRACT 7301 TWELVE MILE CREEK ROAD - BENT CREEK - $805,000 - SOUTH CAROLINA 14863 SANTA LUCIA DRIVE - BELLE VISTA - $339,900 - UNDER CONTRACT 1679 BUCKLAND CT #16 - FARRINGTON - $1.2 M - UNDER CONTRACT - SOUTH CAROLINA

Sold Ballantyne & South Carolina

7814 PEMSWOOD STREET - HIGHGROVE - $1.065 M 14772 VIA SORRENTO DRIVE - BELLE VISTA - $364,000 2039 SAXON PLACE - SAXON PLACE - $585,000 12332 COPPER MOUNTAIN BOULEVARD - COPPER RIDGE - $252,000

CENTER CITY LUXURY CONDOS Demand for lock and leave living continues to drive Charlotte’s surging condo and townhome luxury segment through the area in and around the 277 beltway. 120 units closed in the mid-market segment below $1 million vs 106 last year, a 13% increase. This left a whopping 123 pending contracts on a remaining inventory of 50. In the luxury range above $1 million, the central city area and surrounding area jumped from just 6 closings in last year's second quarter, to 11 this year with another 25 under contract. This shows the demand for luxury products of this type close to the city’s active social centers like South End, NODA, Midtown, and the emerging west side.

LAST 60 DAYS

CENTER CITY CONDO MARKET Q2 HOMES SOLD

CHARLOTTE MARKET FORECAST Headwinds Likely to Taper Luxury Closings While Demand Supports Recent Price Gains As rising interest rates and inflation continue to ripple through the more price sensitive segments of the local real estate market, Charlotte will see some reduction in unit sell through coming off the torrid and historically unprecedented past 2 years. Inventory in the region’s Canopy MLS has jumped from roughly 3,000 homes for sale in March, to over 6,000 in the past 120 days. To provide some reference, this number in 2019 was over 10,000 active homes and considered to be fairly low at the time from a historic perspective. This inventory surge is selective, however, with luxury segments in the region’s high demand areas still displaying stubbornly low listing inventory.

While multiple offer situations are down from the frenzied 2021 and early 2022 pace, they are still prevalent, particularly on updated offerings in high demand areas. Price reductions have also been more frequent, yet some of this is a function of the continued upward push on listing prices. It was not uncommon to see homes priced at 20-25% above their trailing 6 month comparable sales, and while some of those offerings are seeing reductions, closing prices may still come in over trailing comps, just not at the dizzying pace at which they were accelerating the past 2 years.

The region also displays what looks like some enduring changes. Namely the popularity of the outlying suburbs and small towns with their walkability, but also simultaneously the surging popularity of lock and leave multi-family offerings in the city’s hot social districts.

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