IVESTER JACKSON | CHRISTIE'S LUXURY MARKET REPORT
Charlotte | Q3 2023
2023 Q3 Market Report
contents OVERALL MARKET REPORT While Charlotte’s Mid-Market Slows, The Luxury Market Marches Forward
COMMUNITY UPDATES SouthPark Myers Park & Eastover Lake Wylie & The Palisades Providence, Weddington & Waxhaw Ballantyne & South Carolina Center City Luxury Condos
FORECAST Showing and Online Traffic Trends Remain Solid For the Fourth Quarter
PODCAST & VIDEOS From market forecasts, interviews, and house marketing ideas, join the team at Ivester Jackson I Christie's for the latest in Carolinas luxury real estate content.
While Charlotte’s Mid-Market Slows, The Luxury Market Marches Forward
With interest rates at times cresting 8%, Charlotte’s mid-market real estate segment between $600,000 and $1 million saw lower sellthrough though not enough to see inventory levels rise much above 60-75 days absorption levels. In high demand areas, inventory in the lower ranges remained in the 30-45 days’ supply range. The luxury ranges above $1 million in list price continued to see solid activity through the end of the third quarter. Most areas continued to see newto-recently remodeled inventory absorbed rapidly in the upper ranges. Most areas saw sell-through levels very comparable to last year’s third quarter numbers.
SOUTHPARK This bellwether area continues to see tight inventory in the ranges below $2 million in list price. With available days inventory at less than 45 days’ in all but the upper range, 25 active homes in this range remained on the market after a quarter in which there were 11 closings. This is one of the few segments in the region with over 90 days’ worth of inventory.
LAST 90 DAYS
SOUTHPARK AREA Q3 HOMES SOLD & SHOWINGS
MYERS PARK & EASTOVER Another flagship luxury enclave, this area actually saw a 100% increase in closings over last year’s third quarter in the ultra-luxury range above $2 million in list price. Despite the spike in closed contracts, available inventory also rose. 22 homes remained active on the market in the ultra-luxury range while 12 pending contracts are set to close moving into the final quarter of the year. This area continues to perform solidly in terms of price appreciation despite occasional dips in activity.
LAST 90 DAYS
MYERS PARK Q3 HOMES SOLD & SHOWINGS
LAKE WYLIE & PALISADES With a late rally in pending contracts in the $1 million range, this area saw barely any increase in inventory levels over last year’s third quarter ending totals. While closings in the upper range were off compared to last year, a strong flurry of pending contracts puts the area on track for a strong fourth quarter and year end. The lower range showed interest rate sensitivity yet still maintained healthy inventory to pending contract ratios.
LAST 90 DAYS
LAKE WYLIE & PALISADES Q3 HOMES SOLD & SHOWINGS
PROVIDENCE, WEDDINGTON & WAXHAW While this white hot area finally showed some slight decline in sell-through units across the board, it remains highly active, with pending contracts exceeding available remaining inventory. In the luxury range above $1 million in list price, 35 homes showed as pending, with remaining inventory at 43 units. This indicates that this corridor continues to see absorption rates in the 60 day or less range as inventory actually declined from the second quarter this summer.
LAST 90 DAYS
PROVIDENCE,WEDDINGTON & WAXHAW Q3 HOMES SOLD & SHOWINGS
BALLANTYNE & SOUTH CAROLINA While lower price point sell-through sagged from 260+ units to 170 in the third quarter, the $1 million range in this area actually saw an increase in units closed. Numbers rose from 35 to 39, indicative of values on the rise in York County and southwest Charlotte. The area continues to have very healthy pending contract levels relative to remaining active inventory.
LAST 90 DAYS
BALLANTYNE & SOUTH CAROLINA Q3 HOMES SOLD & SHOWINGS
CENTER CITY LUXURY CONDOS The city’s emerging luxury condo and townhome market posted another solid quarter despite the more interest rate sensitive range showing a sizable decline in sell-through. Inventory in the price range below $1 million remained less than 90 days in supply, with 62 pending contracts on a remaining inventory of 51. The luxury segment showed promising operating conditions with 29 units pending over a $1 million in list price, with just 20 posted in active inventory.
LAST 90 DAYS
CENTER CITY CONDO MARKET Q3 HOMES SOLD
Showing and Online Traffic Trends Remain Solid For the Fourth Quarter The region continues to post above average results despite the highest mortgage rates in recent history, as tight inventory and solid demand continued to stabilize pricing levels in Charlotte’s luxury housing market. While inventory has climbed every so slightly, showing activity requests in the MLS continue to be on par with or above last fall’s levels, with online page views remaining at midsummer levels moving into late October. While the region’s inventory levels may edge up between now and January, last year’s pending contracts outpaced demand and spring inventory levels never attained historical levels despite rising rates. We expect more of the same, particularly if any sign of mortgage rate reduction emerges in the first quarter of 2024.
It was also interested to see the percentage of cash vs conventional sources of funding post at between 20-35% depending on price range. In other areas of the state, cash closings in the luxury range crested 50%, including two deals above $10 million in list price in Wilmington, which both closed with cash.
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