Ripe for Investment, Charlotte, North Carolina, is Bucking the U.S. Slowdown Trend

Unlike some of the major U.S. markets, Charlotte, North Carolina, is experiencing strong growth in its real estate market.

"Everyone’s moving to Charlotte," said Jason Gentry, managing broker at Premier Sotheby's International Realty, which services the Charlotte area.

The banking and tech sectors are strong in Charlotte, and more business is coming, as several companies, like Honeywell, plan to relocate there in the coming year. And a growing economy, combined with the city’s mild weather, lower cost of living and good schools, is making buyers take notice, according to Mr. Gentry.

In fact, the market is having trouble meeting the demand.

"We have a large buyer pool, but low inventory," Mr. Gentry said. The number of homes available for sale dropped 5.9% in 2018 compared to 2017, according to a report released Tuesday by the Charlotte Regional Realtor Association. In addition, Mr. Gentry noted, there’s currently just 2.2 months of inventory in the city.

Charlotte’s luxury market is seeing more interest, even as high-end housing prices have started to slip in some of the biggest cities in the U.S., Mansion Global reported earlier this month. That trend is expected to continue in 2019 in places like New York, Chicago and Seattle.

At the same time, low-tax states like North Carolina are attracting demand from higher cost areas, and will likely see prices and sales rising in 2019.

Mr. Gentry generally sees an annual price growth for homes of 5% to 7%, he said. And the numbers stay stable, even as other cities struggle through market downturns.

Today’s investors are likely to see good returns on their properties, according to Reed Jackson of Ivester Jackson Distinctive Properties in Charlotte, an affiliate of Christie's International Real Estate.

Charlotte is continuing to grow, and housing prices are growing with it, Mr. Jackson said, making it a solid long-term investment. In addition, luxury buyers can get more for less in the Queen City.

"We’re still a midsized market," he said. "Luxury in our region starts at $700,000 and caps out at around $7 million to $8 million."

Mr. Gentry had a lower figure for Charlotte’s top end, saying that it’s more in the range of $3 million to $3.5 million.