Million-dollar homes in the Charlotte region are on the rise, following national trend

As growth continues in the Charlotte region, real estate agents like Jessica Grier are continuing to see more homes with price tags over $1 million.

“I think that we’re seeing more and more people move from outside of North Carolina, from places like California and New York, and they’re already used to the higher purchase prices,” said Grier, with Premier Sotheby’s International Realty. “So, it’s just supporting the rise here.”

Redfin, a real estate brokerage company, recently issued a report that nearly 1 in 10 homes in the United States are worth more than $1 million, which is close to a record.

The analysis was based on June home price estimates which includes MLS data and public records. It showed 8% of homes were valued at seven figures and up, which was near June 2022’s all-time high of 8.6%.

The Charlotte region ranked 21st among U.S. metro areas for the growth rate of its share of homes worth $1 million or more. Its share of such homes in June was 4.4%, compared to 4.1% the prior year.

The study found that the Raleigh metro area saw a slight decline in that rate, from 5.8% last year to 5.4% in June, even though the capital city has a larger overall share of homes breaking the million-dollar mark.

Still, the number of residential single-family properties worth $1 million or more in Mecklenburg County has more than doubled in just four years, a Charlotte Observer review of county records shows.

Charlotte’s overall average sales prices are continually going up, Grier said. She added that the area not having a lot of inventory in the market is also driving demand for homes and making prices higher.

“We have so little supply and a ton of demand,” she said.

Mortgage rates and housing inventory

Redfin also cited elevated mortgage rates that are discouraging potential sellers, with homeowners staying put to keep their low mortgage rates.

“The supply shortage is making many listings feel hot,” said Redfin Economics Research Lead Chen Zhao in a news release about the report. “In most of the country, expensive properties that are in good condition and priced fairly are attracting buyers, in some cases bidding wars, mostly because for-sale signs are few and far between right now.”

But Zhao added that there’s no rush to sell high-value homes.

“Recent economic signals that the U.S. may avoid a broad recession could cause high-end buyers to feel more confident in making a major purchase in the coming months,” he said. “There may be more demand coming down the pipeline.”

ATTOM, a property and real estate data group, reported that the top five sales prices in Charlotte ranged from $5.1 million to $7.5 million for the second quarter of the year.

CEO Rob Barber said the surge in homes valued over $1 million is likely tied to the broader increase in property values across Mecklenburg County, which recently completed a property revaluation.

“Given this significant upswing in overall property prices, it’s unsurprising that the number of homes valued at over $1 million has also seen an uptick,” Barber said.

How many million-dollar homes does the Charlotte area have?

Mecklenburg County has more than 17,000 residential single-family properties worth $1 million or more, according to the county’s most recent valuation data. That’s roughly 6% of the single-family homes in the county.

In 2019, there were about 7,000 million-dollar single-family properties in the county.

Just look at NASCAR driver Kyle Busch’s Lake Norman mansionthat’s now up for sale. According to a property listing, the cost is about $13 million. When he bought it in 2012, it was worth $7.5 million — a record for Charlotte at the time.

As of Sept. 7, Redfin had one of the highest-priced home on the market listed for $8.75 million. Located on Baltusrol Lane n south Charlotte, the 11,547-square-foot home has five bedrooms, seven bathrooms sa well as a pool, wine cellar, two laundry rooms and a four-car garage.

The home is owned by former NC congressman Robert Pittenger and his wife, Suzanne.

The second highest-priced home on the Redfin list is also on Baltusrol Lane. Valued at nearly $8.2 million, the 7,995-square-foot home has five bedrooms, seven bathrooms and other luxury amenities like a beverage/coffee bar, heated salt water pool, spa, and a golf court bay.

With a cost of nearly $7.9 million, a 12,718-square-foot home on Providence Road listed by Redfin had features such as a sauna, gym, and recording studio, it has eight bedrooms and 10 bathrooms.

ATTOM reported that the top two estimated value of occupied single-family homes in Mecklenburg County were in Cornelius and were valued at more than $16 million. The next three most valuable were in Charlotte and ranged from $12.2 million to $15.9 million.

Gaston County is also getting in on the high-end action.

The county set a record in August when a $7 million home on Beaty Road went on the market.

Database reporter Gavin off contributed to this report