South End is Growing! Comparing Communities- A Market Update
The Lynx light rail, and all of the development associated with it, have transformed the South End area over the past 6 years. With the announcement of a $190M mixed-use development project on South Blvd at Sedgefield, we thought it was time for another South End/South Blvd Market Update.
The neighborhoods researched for this market update include Sedgefield, Colonial Village, Montclaire, Madison Park and Starmount. Placed on a map, these neighborhoods are located between Ideal Way and Sharon Rd W off of South Blvd (Sedgefield closest in, Starmount closest to Sharon Rd W).
I work regularly in each of these neighborhoods and know the markets well in each. That being said, before researching this post, straight-line appreciation was the expectation. In other words, it seemed like Sedgefield would have the highest appreciation (closest to town, close to a light rail stop) and Starmount would have the least appreciation (farthest from Uptown). As you can see below, that is not the case…
South End/South Blvd Market Report: Jan 1 – Jun 30, 2014 (single family homes)
|Neighborhood||Sedgefield||Colonial Village||Montclaire||Madison Park||Starmount||Totals/Avg|
|# of Sales||22||10||30||50||33||145|
|2014 Avg SP/sf||$207||$143||$129||$150||$104||$147|
|2013 Avg SP/sf||$181||$134||$130||$136||$88||$134|
|Avg Sold Price||$355,991||$230,600||$213,523||$256,951||$160,712||$243,555|
|Avg SP/LP %||97%||98%||98%||96%||96%||97%|
|* Appreciation Avg Excluding Montclaire = 12.5%|
The first thing to note is that, with the exception of Montclaire, all of the other neighborhoods saw strong appreciation (Q1 & Q2 2014 vs Q1 & Q2 2013). Most of these neighborhoods are doing quite well. Starmount is the big winner with over 18% appreciation, followed by Sedgefield at a heady 14.4%.
The second thing to note is that, percentages can be misleading! The main reason Starmount is the appreciation winner is the low SP/sf in 2013 ($88/sf). Both Colonial Village and Madison Park saw healthy, and above average growth. Sedgefield and Starmount are the big winners in this market report but I would expect Montclaire’s appreciation to grow significantly in the next 2 – 5 years, as development down South Blvd continues.
The South End area has clearly benefited from the Lynx line and all of the development that has come along with it. We can see from this market report that the benefits are extending well past South End too! If you’re interested in resale value (like most), it is a great time to get into any of the neighborhoods, but especially Colonial Village and Montclaire — these are the neighborhoods that are “next up” for home renovations, new constructions and big improvements in SP/sf in the Southend area.
Going forward? What does Southend look like in 2018? I heard one city councilman call it “Our Bethesda” referring to the area on the Red line just outside of Washington DC. Look it up! And the blue Line will extend to the University of NC at Charlotte by then too! There are thousands of apartments under construction along the Lynx rail line from Dilworth to Starmount. As young professionals come here and take their first jobs here they tend to rent. But as their futures improve, and it is clear they are staying in Charlotte, and the leases run out, they will look more and more at buying a house in the nearby convenient and relatively affordable neighborhoods. Good news for home buyers in Sedgefield, Montclaire, Colonial Village, Madison Park and Starmount.
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