As part of my Defining Real Estate report on the local and global real estate market, I explore the parallels between the these “comeback” real estate markets and examine why they are enjoying a welcome upward bounce! The pickup in new and existing home sales to match rising residential building permits and new home starts over the last several months is a very positive business cycle dynamic.
Existing residential sales are off to a robust start this year, rising 3.3% in January to an annual rate of 5.69 million units, the strongest pace of sales since February 2007. When you compare to a year earlier, sales were up 4%. New home sales also rose for the month, and inventory remains tight where the supply of homes for sale was down 30.3% to a 2.3 months inventory. With rising construction, rising sales, and a lean inventory we continue to experience stable prices. According to the latest Federal Housing Finance Agency (FHFA) home price index, home prices are up 6.3% year over year.
The Game Changers Behind the “Comeback” Real Estate Market
Prices moved higher as the median sales price was up 14.5% to $205,000.00. The luxury market has dramatically improved with a low inventory to boot.
Within Myers Park and Eastover one of the most sought after and expensive neighborhoods, there are only 27 homes on the active market over $500,000.00. To date, there have been 35 closings of homes over $500,000.00 in Myers Park and Eastover with 9 homes selling at over offering price.
The Charlotte real estate market is healthy indeed and has returned to above Pre-Recession market. Starting Price for luxury in the U.S. dollars is 1.5 million. Luxury home prices in Charlotte continue to trend upwards in 2017. Even homes over 3 million have gone under contract within the past 6 months.
Pictured below is one of my listings offered for $3,875,000.00 in Waxhaw situated on 9 acres awaiting its new family. Also, pictured is a home in Eastover that I placed under contract offered for $3,600,000.00.
420 Saratoga Woods Drive Offered for Sale by Matthew Paul Brown, Reside Realty, LLC, $4,125,000.00
Pictured Hempstead Place Matthew Paul Brown – sold representing Buyer for $2,885,000.00
How to Market a Luxury Home in a Global Market…
There are six considerations to keep in mind when marketing an exclusive property.
- First Impression – Before anything else, the best scenario for any property is that it is in excellent condition.
- Compelling Narrative – Tell your story about the property
- Illustrated History – Inspiring videos and exceptional photography that can be viewed on a smartphone, and are designed to present the splendor of a listing. Detailing the special features and telling the story of the home.
- Cross-Promotion – Because luxury homes already have a specific global audience, traditional methods of maximizing exposure in a general way aren’t always effective –Hosting a bespoke wine event at a property with a wine expert.
- Invitation Only – Once renderings, photos, and videos have sparked interest in a residence, there’s simply no substitute for an on-site visit. Host introduction preview party to an exclusive guest list.
- Ensure that your home is positioned to the current market and not overpriced. Otherwise, it may linger and become stigmatized.
New Era in Real Estate
One of Charlotte’s biggest growth areas is in health and fitness, an industry which has moved far beyond the obvious gym and swimming pool offer, with intelligent use of the city as the enabler of fitness – most visibly through the increased encouragement of cycling. Young families want the convenience of easy commutes to work so it will afford them more quality time at home with their families.
I would welcome the opportunity to work with you in discovering your new home.
Let the journey begin…
Matthew Paul Brown pictured cycling in Myers Park on Queens Road West