Pricey Charlotte Market Leaves Entry-Level Buyers on Sidelines

High-end homes are driving Charlotte’s residential market, but entry-level buyers are out in the cold.

Overall sales are down slightly year over year, but activity is rising sharply at the top.

Single-family home sales in April dipped 2.3 percent from a year earlier, with nearly 3,700 homes sold across the metro, the Charlotte Business Journal reported, citing Canopy MLS.

Sales of homes priced above $700,000 rose 18 percent year over year, while sales in the $600,001 to $700,000 bracket were up 15 percent. Homes between $500,001 and $600,000 also saw modest gains.

Meanwhile, sales fell in the entry-level segment, particularly under $300,000. Inventory in that range is tight, and higher interest rates are sidelining many first-time buyers.

On the multifamily side, townhomes and condos priced above $700,000 saw the sharpest year-over-year sales growth, up 40.7 percent. Sales of units priced between $200,001 and $300,000 also grew, while mid-tier sales declined.

Inventory across the region is increasing, up 42.2 percent over the year. The bulk of that growth is concentrated in higher-priced segments, with listings in the $600,001 to $700,000 range up 121 percent year over year. Supply also increased in outlying counties like Iredell, Rowan and Lincoln, which all had at least 3 months of inventory, above the regional average of 2.8 months.

The median home price in April rose 2.3 percent annually to $399,250. Average list prices climbed more than 8 percent to $590,966, but the average share of original list price received fell below 97 percent, a signal of pricing friction.

Homes spent an average of 47 days on the market, 10 days longer than a year ago but down from March.

Buyer activity is holding in select price bands, but the data reflects a bifurcated market, where affordability constraints and rate sensitivity are reshaping demand across the Charlotte region.

— Judah Duke