Emerging Market Report |Charlotte & Lake Norman

EMERGING MARKET REPORT

Charlotte & Lake Norman Region

Contents Charlotte Area Surrounding Markets INTRODUCTION • Lancaster County • Monroe • Gastonia, Kings Mountain, & Shelby • Clover & York • Hickory • Newton & Conover • Statesville • Lincolnton • China Grove & Locust • Salisbury

Introduction Introduction The Charlotte Region’s explosive growth continues to ripple into previously undiscovered areas of the region, with real estate transactions above the $500,000 and million-dollar levels spreading to smaller adjacent towns. Rural areas as well as resurgent areas are both enjoying new construction and remodeling project interest.

In the Charlotte area, the counties in South Carolina continued to surge, while Lake Norman’s popularity and improved highway access spurred more luxury-level interest in places like Statesville, Hickory, and Troutman. While 2022 saw a flattening of the trend, many areas have seen a five to ten fold increase in sell-through above $500,000 and $1 million in list price since 2019, just four short years ago.

Lancaster County Due to explosive growth in Indian Land and Lancaster, development has moved full force into Lancaster County. Development along the meandering Catawba River corridor continues, with some communities like Riverchase Estates and Millstone Creek now cresting well above $1 million and approaching $2 million. The four-year trend in the $500,000 to $1 million range exploded from 27 sales to 137, while million-dollar sales sprouted from just 1 unit in 2019 to 13 in 2022.

Monroe Riding spillover interest from the popular Waxhaw area, Monroe saw an 800% increase in sold homes over $500,000, spiking from 7 units in 2019 to 46 in 2021 before settling back to the 34 level in 2022. The area is also seeing significant development in the 55+ segment and interest along the new Route 74 bypass.

Gastonia The western Gaston County communities continued to follow the already popular Belmont with infill and redevelopment in Gastonia, as well as the beginnings of Charlotte’s outward reach arriving in the Shelby and Kings Mountain areas. Hidden gem Moss Lake continues to percolate with higher values nearing the million-dollar mark near Shelby, while outdoor enthusiasts embrace Crowders Mountain. All of which can be capped by a trip to Kings Mountain’s fantastic new casino or breweries.

Kings Mountain & Shelby

Clover & York Another high-growth area adjacent to growing Rock Hill, the communities of York and Clover benefited from low taxes, new development, and proximity to Lake Wylie. The area showed a large increase in home sales above $500,000, and sell-through broke out from 15 units in 2019 to 78 in 2021. Despite settling back to the 40 unit level last year, the area now sustains a three-fold increase in luxury sales from 2019 levels.

Hickory Predictably, with its adjacent proximity to both Lake Norman and Asheville, the Hickory and Lake Hickory areas have seen explosive growth since 2019. Luxury transactions have spiked from just 3 deals over $500,000 to 43 in 2021 before settling back to 33 in 2022.

With its reinvigorated downtown area flourishing with new dining and brewery options, Lake Hickory and Lookout Shoals Lake both emerging as value priced options close to high demand Lake Norman.

This area should continue to see upward movement in its price ceiling, now cresting $1 million in value.

Newton & Conover Proximity to both Hickory and Lake Norman will likely fuel more rapid appreciation above the $500,000 mark as 2023 moves into 2024. With the past 90 days seeing just under 10 transactions over $500,000 in value this market has seen a 900% increase in sellthrough already and projects to attract more deals moving forward.

Statesville Riding the same dynamics as neighboring Hickory, Statesville has also seen a spike in activity over $500,000 with several properties cresting $1 million in the past two years, particularly along Lake Norman’s North Shore area. Statesville is also benefiting from downtown reinvestment and a burgeoning infill and remodeling market in walkable areas near town. In 2019 only one property closed over $500,000 in list price in Statesville in the spring market; this year that rose to 18 homes that closed during the same period.

Lincolnton With its recently revitalized and walkable downtown coupled with improved highway access to Charlotte, Lincolnton continues to see property values rising. Near town infill and remodel projects have begun to crest $500,000 in value as new multi-family projects have sprouted within blocks of the town’s historic square. New construction options between the city and nearby Lake Norman are now exceeding the $750,000 mark with sell-through units over $500,000 now recording double digit numbers during the spring market compared to just a handful in 2019.

China Grove & Locust These Cabarrus County locations both sport lower property taxes and adjacent development in nearby Kannapolis and Concord. With ample land for development, Locust will likely see values and units rise in the $500,000 to $1 million range.

Salisbury While more isolated from Charlotte than other emerging areas, Salisbury will likely benefit from having some charming historic architecture and proximity to nearby High Rock Lake. While the town saw a sizable decline over the past 90 days in comparison to last spring, closings remain 800% higher that the similar period in 2019.

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