Charlotte North Carolina Market Update for:
Condominium and Townhomes in Uptown Charlotte (Downtown / Center City)
MLS Area 99
Data gathered for November 1, 2009 – November 30, 2009
New Listings 45
In comparison to: -27.42% October | +12.5% 2008 | -16.67% 2007 | -51.61% 2006
Pending Sales: 11
In comparison to: -22.43% October | +22.22% 2008 | -35.29% 2007 | -83.82%
Sold Listings: 9
In comparison to: +25% October | +80% 2008 | -50% 2007 | -84.21% 2006
Average Sold Price: $323,278
In comparison to: +47.73% October | -13.09% 2008 | +17.32% 2007 | 5.06% 2006
Median Sales Price: $300,000 (includes any single-family homes that may have closed during November as well as Condos and Townhomes)
Average Days on Market until Contract: 79
In comparison to: -22.55% October | -61.46% 2008 | +6.76% 2007
33% of the condo sales that closed in uptown Charlotte in November offered a seller concession averaging $3,537
- Conventional: 7
- FHA: 1
- Cash: 1
Tax Value as compared to Sold Price
Condos and Townhomes that sold in uptown Charlotte in November closed at an average of 107.49% of their assessed tax values.
Percentage of Listed Price Received
Sellers received 92.21% of their original asking price for the sales in November in uptown Charlotte. When concessions are subtracted from the sales price, the figure drops to 91.78%. Of the homes that sold in less than 99 days, those sellers received 93.85% of their asking price while homes on the market for more than 100 days yielded only a 86.45% return of the original asking price.
Market Analysis for Condo and Townhomes in Uptown Charlotte / Center City
Following the recovery trends of the single family market, Charlotte’s center city / Uptown townhomes and condos are starting to see a recovery from 2008’s dismal sales. While the average sales price remain down year-over-year 13.09% to 2008, November’s average price was the third highest so far for 2008.
Pending sales and Closed units also experienced a rebound year-over-year as well as the average days on market fell 61.46%. In addition, while a short sale and bank-owned market is starting to emerge uptown, just one of the 9 sales was a bank-owned or short sale.
What remains is a 29.4+ supply of condos and townhomes in Uptown Charlotte. There are a couple of factors that are hindering sales in the condo and townhome market, not only in uptown but throughout the Charlotte area: jobs and financing.
Access to financing in the Charlotte condo and townhome market remains a challenge. Overall, 40% of buyers are utilizing FHA financing due to lower down payment and qualification requirements. Compared to a single-family detached property, condos must undergo a certification process to meet the FHA’s standards. Unfortunately, most of the condo complexes in the Charlotte are not certified and as a result, buyers must obtain a conventional financing which has higher down payment requirements, credit score requirements, etc.
The same scenario exists in Charlotte’s Co-op buildings in the Myers Park area, but on a much smaller scale. Essentially, the limited financing options have kept co-op sales prices well below market values set by similar condos in the area.
As the job market improves in Charlotte and more developments are approved for FHA financing, the condo market in uptown Charlotte will begin to contract.