May 2010 Cotswold Real Estate Update

If you're looking for good real estate news in Charlotte, look no further than the Cotswold neighborhood in south Charlotte.  Try as I might to find why and how the market produced the gains for April, the simple answer is that Cotswold had a great month.  

In April, 29 new listings hit the market, bringing the active inventory up to 88 total available listings.  Only six listings sold during the month of April, the same as occurred in March and two more than sold the year prior.  Unlike the year prior, the majority of the homes that sold were over $500,000, with only one home (4427 Woodlark) closing below.  Additionally, not one of the closed sales were for a bank-owned or short sale listing. 

Since higher-end luxury homes were the majority of the sales in Cotswold, buyers paid an average of $207.30 per square foot, up from the year prior of $165.42 and higher than even 2007 when it was $192 per square foot.  Two homes sold for less than $200 per square foot: 4427 Woodlark (a 1950's 3 Bedroom, 2 Bath updated ranch style home on .45 acres) and a new home 929 Mason Oaks (a 4 Bedroom, 3.5 Bath Transitional built in 2009). 

Sellers received an offer in less than 170 days and they received 90% of their original asking price. 1500 Audubon  Rd is a case of bad timing resulting in an excellent steal for the buyer.  In December of 2008, this spectacular 4 Bedroom 3 Bath renovated pop-top ranch hit the market for $1,275,000.  Over the course of 500 days of being on the market, the seller reduced the home over $300,000 and eventually settled for $902,000; 71% of the original asking price. 

The data in Cotswold suggests that the higher-end buyer is starting to feel comfortable to purchase real estate again.  Unlike in prior months in neighboring areas, every transaction was financed and done so with a Conventional or Jumbo loan. 

It's premature to use the r-word (rock bottom) for Cotswold but the future isn't looking too shabby.  Currently in inventory, there are five short sale listings and three active bank owned foreclosures.  For all on 28211, only 12 notices of default were filed during April, which also is better news.  The reality check is in the current inventory levels.  With only six homes closing a month in Cotswold, it is resulted in a 14 month supply of homes at the peak selling time in Charlotte.  If this carries over into fall, the inventory level would be enough to drop prices further until inventory came back in line.

Therefore my advice to sellers would remain to watch the market and to be mindful of what any further depreciation of value.  I would continue to price ahead of the market instead of at the most recent comps since it is likely that prices will continue to decline in the near future.