CHARLOTTE, N.C. -- It is not a question if home prices are rising, but whether prices are rising too quickly. According to Allen Tate Realtors, home prices in certain Charlotte neighborhoods have risen nearly 10 percent over the last year.
"What it all comes down to his lack of supply," said Pat Riley, chief operating officer and president of Allen Tate Companies. "What we have is: How fast are we appreciating to those norms? In some cases, we have already reached the peaks of 2007 again."
Riley points out several factors for Charlotte's surge in home prices.
"Builders are jogging, instead of sprinting. They are doing that because land is taking longer to develop. People know what they want. They are very particular right now. Finally, you have the two largest generations... the Boomers are starting to downsize, and the Millennials are buying their first home. If I have a home today that has an open floor plan, hardwood floors... bottom line: everybody wants it."
The Park South Station neighborhood off Archdale Drive in South Charlotte has seen explosive growth over the last decade. Management tells NBC Charlotte proximity to Light rail, higher performing schools, and being close to the South Park Mall have fueled sales.
"We definitely seen a lot of good appreciation." said Homeowner Greg Gasior. "Honestly, they're selling out really quickly, I'm surprised."
Gasior, along with his wife purchased their home in Park South back in 2009. Now ready to expand their family, a higher selling price would help his family meet their goals.
"Our plan is really to use the appreciation of this, to help with our down payment on the forever home."
Allen Tate Realtors, one of the largest Realtor Companies in Carolinas with billions of dollars in sales last year, expects home prices in certain neighborhoods to continue to rise slightly over 5 percent in the next 6 months.
Pat Riley says every neighborhood, and home is different, but overall:
"We're coming down to the homestretch to normalcy I'll call it."