Foxcroft Emerges as a Prime Hot Spot as Charlotte's Luxury Housing Market Surges

Despite a general cooling off of the housing market in Charlotte from its pandemic-induced highs, the high-end segment has managed to maintain its momentum. Over the past five years, there has been a remarkable surge in the number of homes selling for at least $1.5 million across the Charlotte region. Data from Canopy Multiple Listing Services reveals that in the 12 months leading up to May, a total of 787 homes were sold for $1.5 million or more, marking a staggering 300% increase from the 197 closings in the same period ending in 2019. These figures encompass various types of properties, including single-family homes, townhouses, and condos, and span across the 16-county region. The luxury market is categorized into several price points, with ranges from $1.5 million to $1.99 million, $2 million to $2.49 million, $2.5 million to $2.99 million, and $3 million or more.

During both the five-year and one-year periods, sales have demonstrated growth in each price segment, albeit to varying degrees. Furthermore, luxury-tier homes in Charlotte are selling at a significantly faster pace compared to 2019, with homes spending anywhere from 25 to 77 fewer days on the market, depending on the specific price bracket.

This surge in the high-end market can be attributed to the unique circumstances surrounding the pandemic. As individuals sought to adapt to remote work and changing lifestyles, there was an increased preference for larger homes that provided additional features and amenities. These included spaces for flexibility and home offices, as well as entertainment areas like pools, theaters, and basketball courts. Consequently, the luxury market experienced a surge in sales during the pandemic, which has yet to be fully offset by a corresponding increase in supply. As a result, a shortage of high-end homes persists, leading to higher prices and shorter selling timeframes. It's worth noting that despite the strong market conditions, homes in the luxury segment still need to be presented in market-ready condition to command top dollar.

In terms of pricing, the sweet spot for luxury homes in Charlotte is typically within the range of $1 million to $3 million. According to industry experts, properties below $2 million are particularly sought after, although finding inventory within that price point can be challenging, especially in upscale neighborhoods, unless the property is under 3,500 square feet. Exclusive neighborhoods such as Eastover, Myers Park, Foxcroft, Old Foxcroft, and Quail Hollow continue to be hotspots for luxury home sales. However, developers are also exploring opportunities in areas where land acquisition costs are comparatively lower, such as along the Carmel Road corridor. Neighborhoods like Morrocroft and Pellyn Wood have seen development activity as prices continue to rise.

In Mecklenburg County, the trend of robust luxury home sales persists. In 2023 alone, dozens of homes sold for $3 million or more, with 47 homes reaching that threshold from January to May. Additionally, 16 homes were sold for at least $4 million, 13 of which were completed in the last three months of that period. These figures reflect a substantial increase compared to previous years.

Overall, while the housing market in Charlotte may have cooled off, the high-end segment remains a stronghold. The increased demand for luxury properties, coupled with limited supply, continues to drive prices up and creates a favorable environment for sellers. The ongoing shortage of high-end homes suggests that the market dynamics are likely to persist in the near future, making it a lucrative market for luxury home sellers in Charlotte.

Disclaimer: This article was originally posted at: https://www.bizjournals.com/charlotte/news/2023/06/28/high-end-housing-luxury-homes-foxcroft-eastover.html

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