Cover Story
Urban Home's 2007 Charlotte Real Estate Market Overview

While scores of U.S. cities are struggling with soft housing
markets, Charlotte enjoys a market that is “strong, stable, and healthy,” says Dot Munson, president of the Charlotte Regional Realtor Association (CRRA). And the reason? “We have a good economy here,” she explains, “and since Charlotte real estate hasn’t experienced the double-digit appreciation of other cities, today we’re not going through any market correction.”

At The Littlejohn Group, a Charlotte marketing and sales consultancy, owner Emma Littlejohn agrees with the upbeat assessment. “We’re one of the few housing markets in the country that is strong,” she states. “The Charlotte metro area has good economic growth and it has never been over-appreciated or under-appreciated.”
Charlotte has achieved a synergy, Littlejohn believes, that other cities would envy. “Companies are relocating here because it’s such a livable area,” she notes. “The leadership of the business community is strong and has worked with city government toward a strategy of well-managed growth. Charlotte’s urban core is also very successful and still has land available. That means the city should be able to keep the downtown thriving with jobs and amenities.”
Munson too has found that Charlotte enjoys a good synergy. Not only does the expansion of business and jobs promote a steady housing market, by avoiding the real estate bubble that has inflated home prices in other cities, she points out, “We’re able to attract new companies because they like the fact that Charlotte still has affordable housing.”
If any potentially dark clouds loom on the Charlotte horizon, Munson concedes that traffic congestion is a concern that city planners are watching. Much hope is riding on the success of the light rail. If a thriving urban core can keep jobs downtown, rail can provide one viable solution for reducing the number of commuters on the road.

The New Home and Condo Market
If the big picture is positive, among the individual submarkets on the Charlotte real estate scene Littlejohn reports that “the south corridor remains the premium market, though there is a good distribution of nice communities throughout the metro area.” Builders of higher-end tract homes, for example, “are now working outside of south Charlotte, especially in master-planned communities that will have custom homes as well.“
In particular, Littlejohn points to higher-end home construction activity in North Mecklenberg County, Union County and some parts of Cabarrus County, as well as Fort Mill and southwest Charlotte. According to Littlejohn, active developers include Simonini Builders in the Concord Mills area; Shea Homes in Union County; Orleans Builders in Iredell; David Weekley Homes and Turnberry Homes in Davidson; and Rhein/Medall Communities at The Palisades in southwest Charlotte.
“ For families with children, though, schools are still the driver in looking for locations. So we see many families buying new homes in south Charlotte, Fort Mill, and Union County.”
Those looking for new single-family homes, Littlejohn states, will find strong offerings in the Lake Wylie and Lake Norman areas, the various south Charlotte communities, and in-fill home construction in Myers Park, Eastover, and the “old Charlotte” neighborhoods. Her pick for a “hot” new community is The Palisades in southwest Charlotte. “And I think that neighborhoods in the south corridor which are near the new light rail system will become hot properties in the future,” she believes.
Though some local homebuyers are moving out from Charlotte and seeking larger homes in Fort Mill, Union and Cabarrus counties, Littlejohn continues, “I am also seeing a new trend of people moving from the suburbs back to Center City. And I see a trend in neighborhoods such as Myers Park where people sell a large single-family home and then move down to a new condominium in the same neighborhood.”
Littlejohn reports that high-end, in-fill condominium construction is strong in Center City, Dilworth, and Myers Park. And in Moorseville, she says, the new Langtree at the lake development will feature lakefront condominiums in the $600,000-plus range. “Some higher-end projects, especially town homes, are also being built in South Park and south Charlotte,” she adds.
“ Young professionals and empty-nesters are buying condos and town homes in great areas like Center City, Dilworth, and Myers Park,” reports Littlejohn.
With a diverse age group of condo buyers, flowing floor plans must work well for a wide variety of purchasers. Long-time Charlotte developer, Boulevard Centro, says several key components are necessary to ensure condominiums have an open, airy design. “Expansive windows that allow plenty of natural light to flow through the home along with the use of fluted glass interior walls increase the feeling of spaciousness within a condo,” said Catherine Mitchell, Vice President, Boulevard Centro. “Buyers should also look for high ceilings on the main living level and kitchens that flow into living areas. This creates a wonderful, gracious space for entertaining and spending time with family.”

The Finishing Touches
What do today’s buyers look for in a new home, town home, or condominium? “They want premium finishes,” Littlejohn observes, “like exotic wood flooring, stainless appliances, higher-end appliance brands, custom cabinetry, spa baths, wireless capability, and great outdoor spaces. Most of all, homebuyers are more discerning now. They look at a property overall, the quality of the construction, the aesthetic, and the total package of amenities.”

The Home Resale Market
When it comes to existing homes, says Littlejohn, buyers are seeking “great locations, in neighborhoods like Dilworth, Myers Park, Midwood and Elizabeth, which are walkable and have real character.” Also important to these buyers, she adds, are yards and outdoor living spaces, plus the ability to upgrade and renovate a property.
As with new homes, Littlejohn confirms that some buyers of existing homes are moving out to suburban communities, while many young professionals and empty-nesters are doing a “reverse migration” from the suburbs back into Center City. “People with higher incomes,” she explains, “want to be near the places where they spend their time. But for families with kids, buying decisions are still driven by the desire to get a home in their price range as close to work as possible.”
At the upper end of the real estate market, Dot Munson says resale activity is strong. “Young singles are being recruited by companies here,” she notes, “and those singles are looking for a lifestyle, not just a standard townhouse. That’s why the uptown is hot among young professionals. They work to live, rather than live to work.”
Munson characterizes SouthPark as being “like a new uptown,“ an emerging area with its mix of new condominium and office construction. The southern part of Mecklenberg County, she reports, is being drawn increasingly into Charlotte’s orbit as a bedroom community. And the lakeside communities remain as popular as ever.
Altogether, in April the Carolina Multiple Listings Services reported approximately 2,700 active listings of resale homes in the $400,000 to $750,000 price range, including some 2,300 single-family detached homes and nearly 400 condominiums and town homes. April listings of homes priced at more than $750,000 included some 1,200 single-family detached houses and about 60 condominiums and town homes.
The strength of the Charlotte real estate market is suggested by the number of residential closings reported in the 12 months between March 2006 and April 2007. During that period, nearly 1,600 existing properties were sold in the $400,000 to $750,000 price range, and about 500 homes priced above $750,000.
These properties are attracting newcomers to the Charlotte area, as well as longtime residents. Littlejohn says the northern states of New York, New Jersey, Ohio, and Pennsylvania are leading the way among transplants. And Munson reports that another measure of Charlotte’s broad appeal is the arrival of many retirees, people who are leaving Florida and moving to the Queen City.
But whether the buyers are young or old, Munson notes some trends in what people are looking for when they buy an existing home. “Outdoor living areas are hot now,” she relates, “with space for entertaining and maybe an outdoor kitchen. Indoors, people want ‘family togetherness’ areas like a great room connected to a nice kitchen. Master bedrooms and even secondary bedrooms on the main level are popular, especially as baby boomers think of having guests or taking care of elderly parents.”
Since Charlotte has enjoyed a steady housing market rather than the dramatic price run-ups reported in many other metro areas, newcomers to the Queen City “may be arriving from higher-priced markets,” states Munson. “They have the money to put into buying the homes they want and so they want homes that are done right. They want a lifestyle, not just a house.”
To attract discriminating buyers, Munson has some advice for homeowners who may be thinking of selling. “Be sure to update your home, especially the kitchen and bathroom,” she counsels. “And since curb appeal remains a key consideration, landscaping is important. What we call ‘staging’ is also important. You may need to de-clutter your home, put your furniture in a better arrangement, and not have too many personal items and collectibles in the house.”
The CRRA reports that homes are now selling, on average, at 97 to 98 percent of the listing price. During the first two months of 2007 these homes spent an average of 122 days on the market. The average sale price in February was up 10 percent from the year-ago figure, while the number of closings was up nine percent. And since the average sale price in February was $219,515, buyers with a higher price range can still get a lot of house for their money.
“ I don’t see our market here in Charlotte as being either a seller’s market or a buyer’s market,” suggests CRRA president Munson. “Our market is fairly even. In my 23 years as a Realtor, in fact, I’ve never seen Charlotte become an out-and-out buyer’s market. Today we’ve weathered the dot-com bust of several years ago and we’re seeing fewer foreclosures.”
Looking to the future, Munson is optimistic about the long-term prospects for the Charlotte real estate market. “We don’t have a huge problem with sprawl that could choke off growth, and the city is working to manage its growth in a smart way,” she believes. “Businesses are expanding, new companies are coming in, and we’re now the nation’s second-largest banking center. But even more important, we have a lot of great people, great places, and a great quality of life here.”

CHARLOTTE RESALE MARKET

as of April 2007
2,681 active residential listings: $400K to $749,999
1,267 active residential listings: $750K and above

between March 2006 and April 2007
1,574 residential closings: $400K to $749,999
490 residential closings: $750K and above

as of April 2007
2,311 active single-family detached residential listings: $400K to $749,999
1,206 active single-family detached residential listings: $750K and above

between March 2006 and April 2007
1,441 residential single-family detached closings: $400K to $749,999
462 residential single-family detached closings: $750K and above

as of April 2007
360 active condo/townhouse residential listings: $400K to $749,999
61 active condo/townhouse residential listings: $750K and above

between March 2006 and April 2007
133 residential condo/townhouse closings: $400K to $749,999
28 residential condo/townhouse closings: $750K and above

—Source: Charlotte Regional Realtor Association

CHARLOTTE 2006 NEW HOME SALES
——————————————————————
Single-Family $400K-$600K: 533 units
Single-Family $600K-$800K: 107 units
Single-Family $800K-$1MIL: 68 units
Single-Family $1MIL-Plus: 77 units
——————————————————————
Townhouses $400K-$600K: 61 units
Townhouses $600K-$800K: 6 units
Townhouses $800K-$1MIL: 6 units
Townhouses $1MIL-Plus: No units
——————————————————————
Condominiums $400K-$600K: 142 units
Condominiums $600K-$800K: 15 units
Condominiums $800K-$1MIL: 11 units
Condominiums $1MIL-Plus: 4 units

CHARLOTTE 2006 HOME RESALES
——————————————————————
Single-Family $400K-$600K: 1,298 units
Single-Family $600K-$800K: 546 units
Single-Family $800K-$1MIL: 230 units
Single-Family $1MIL-Plus: 298 units
——————————————————————
Townhouses $400K-$600K: 23 units
Townhouses $600K-$800K: 17 units
Townhouses $800K-$1MIL: 12 units
Townhouses $1MIL-Plus: 7 units
——————————————————————
Condominiums $400K-$600K: 79 units
Condominiums $600K-$800K: 17 units
Condominiums $800K-$1MIL: 12 units
Condominiums $1MIL-Plus: 7 units

—Source: The Littlejohn Group