So what constitutes a Luxury Home in the Triangle? Next time I'll focus on the properties themselves. Today I thought I'd write about the market in general. This market is defined as having residential housing priced at $500,000 and above.
- Did you know over 144 homes over $1 Million sold in the Triangle in 2006 alone. Homes over $1M sold grew by 35%!
- There were 1,200 closings of luxury priced homes in 2004, 1,500 closings in 2005, and 1,9000 in 2006. The market grew by 25% compared to 2005.
- Even though sales are higher, inventory is up 45% in this segment.
So, where are these buyers coming from with all that cash? The Top 4 Counties in the United States that sent buyers to the Triangle:
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- Fairfax, VA
- Cook, Illinois
- Los Angeles, CA
- Suffolk, NY
The average % per year gain for a luxury priced homes has been 7% relative to all housing types at 5.63%. The Subdivision with the greatest appreciation was Country Club Hills inside the beltline(ITB).
What section of the Triangle is seeing the most Luxury Home Buyers?
- 25% of all luxury homes closed occurred within the North Raleigh/Wake market. Cary/Apex/Morrisville is second at 18% and Chapel Hill/Carrboro is third at 12%.
I find this number interesting considering the overall pricing of real estate to be higher in Chapel Hill.
What developments have seen the most amount of luxury home buying activity?*
- Brier Creek
- Wakefield Plantation
- Cary Park
- Highland Oaks
*Based on homes closed.
As mentioned earlier supply of inventory has increased substantially throughout the Triangle. The area with the least amount of inventory included Chapel Hill/Carrboro with an average supply of five months. The area with the highest amount of Luxury Home Inventory was Chatham County w/an average of fifteen months of inventory.
