Real estate agents say it’s hard to make money in the Charlotte area because condo prices have gone through the roof.
A glut of condo sales in the last year and a half has driven up the value of Charlotte condos by as much as 70 percent, the city’s housing bureau said in a report Tuesday.
The bureau says condo sales are up more than 50 percent in the past year and that there’s been a 40 percent jump in condominium sales in Charlotte-Mecklenburg and Mecklenburgh counties since the first quarter of 2018.
The boom in condo sales has been driven by a glut of condominiums being bought for a fraction of their true market value, the bureau said.
Condo sales are on the rise again in Charlotte and are projected to grow another 30 percent over the next 12 months.
The Charlotte-mecklenberg-Meekinton-Raleigh-Chattanooga metropolitan area’s condo market has grown by almost 40 percent since the fourth quarter of 2019, according to the bureau.
Condos in Charlotte have risen by about 80 percent over that same period.
Charlotte- Mecklinburg-Mekinton-Richmond has grown the fastest at almost 300 percent.
The city of Raleigh, the most populous city in North Carolina, has the highest number of condo buyers in the state, with nearly 1.1 million homes sold, according the bureau’s report.
Raleigh is home to Charlotte-area developers and is also home to the headquarters of AT&T, Charter Communications and Comcast.
Charlotte’s condo boom is not the only thing happening in the area, though.
The metro area’s population is expected to increase by 5.6 percent by 2040, according an analysis by the state Department of Commerce.
Charlotte, Mecklnburg and other cities in the region are also experiencing an increase in population and an influx of immigrants from Central and South America, according TOBAC.
The influx of people has been a boon for the area’s economy, but it has also spurred some developers to look at other potential development opportunities.
Condominiums are a key ingredient in many projects, said Mike Toth, executive director of the city of Charlotte-Motte, which includes Charlotte.
“You can see it in the real estate market as well as the development market.
They have the potential to be the catalyst for the whole area,” Toth said.
Toth also said that the city has done a lot of work with community groups to develop development in the city, and is trying to develop a plan for the future.
The government agency also said in its report that Charlotte is in the top five most affordable markets in the country for millennials, with prices at more than $500,000.
That compares to prices in Dallas at about $150,000, Miami at $130,000 and New York at $115,000 for the same age group.
The top five places to buy condos in Charlotte are Charlotte-Fayetteville at $160,000; Charlotte-Chatham at $140,000 to $150.
The cheapest place to buy a condo is in Winston-Salem, N.C., at $85,000 in a $300,000 home.
The average condo price in Winston Salem is $150 per square foot, the report said.
It says condos are a good investment for millennials who want to stay in Charlotte for the long term and also can help build wealth for the city in the future, as millennials have a lower income and need more financial help to help with housing costs.
Toths also said the region’s condo growth is a sign that other cities, including New York, are taking notice.
“There’s a lot happening,” Toths said.
“If we can continue this growth, we can build on that and get people to stay and help build the city.”
The Charlotte City Council approved a package of $6.2 billion for the construction of housing projects in 2021.
The project includes more than 1,000 condo units.
The projects are expected to be complete by the end of 2019.