Friday, January 15, 2016

2015 Market Snapshot: Cameron Village and Cameron Park

The Cameron Village area is going to see a lot of changes over the next several years. The two large apartment buildings on the corner of Oberlin and Clark were just the beginning. More apartments are coming on Oberlin, and the Cameron Village small area plan calls for even more density within the Village. 

Thursday, January 14, 2016

2015 Market Snapshot: Mordecai and Oakdale

Icons made by Freepik from

Icons made by Freepik from

Tuesday, January 12, 2016

2015 Market Snapshot: Historic Oakwood

Icons made by Freepik from 
Continuing the review of sales of Downtown Raleigh homes in 2015 by neighborhood, Historic Oakwood had a lower volume of sales with only 7. Still a very popular neighborhood and the homes tend to sell quickly.

Curious to know how your home or neighborhood compares? Send me a note or give me a call.

2015 Market Snapshot: East Downtown Raleigh

With the new year comes lots of analysis of the previous year, and in the past I have focused on Downtown condos only. I'll provide a snapshot of that activity as well, but this year I decided to take a look at all the other areas around downtown.
Icons made by Freepik, Teela Cunningham from www.flaticon.comis licensed by CC BY 3.0
We'll kick off this year with East Downtown. This includes single family homes within the area bound by New Bern Ave, Tarboro Rd, MLK, and East St.

Whether or not comparing average price year over year is statistically accurate, everyone who is familiar with this area knows that it is booming.  So the 39% increase in average price doesn't surprise me at all.

Interested in buying in this area or need to sell? Give me a call or shoot me a note. Its very common to have multiple offers on these homes.

Tuesday, January 5, 2016

Blount Street Commons Wrap up

As we begin 2016, it’s hard to believe that back in 2011 Blount Street Commons was mostly vacant land. Once the major development for the north end of town, the project had stalled during the downturn.  When I joined the project it was clear that the market had shifted and that it wasn't likely that the historic homes and lots would be sold as residential. That spurred the Missing Middle post back in 2012. I still think that there is an opportunity for a low rise community, especially with one-level living, but that's for another post. 

Thankfully the economy turned around and now the first phase (2 blocks), as it was once known, is complete.  The other 3 blocks originally part of the plan were kept by the State. It is very nice to see the neighborhood come together as one cohesive unit. Here’s a recap of the results:

Row and Carriage Homes

Stanley Martin has sold out of both the carriage homes, row homes, and the new condos along Person Street. 

Historic houses and lots sold

A new residential house is being built by Rufty Homes.

The Merrimon Wynne house is a successful wedding venue and they are building a new building on the lot next door for receptions and general expansion.

The Cowper house was purchased by Legacy Homes and renovated for commercial use and  was purchased by Robertson Law

Lewis Smith house was purchased and renovated by Hobby Properties. 

Russ house is now the home of Gallery C .

Person Street Homes Sold

The homes located south of the Murphy School were listed for sale by the State in 2015 and they are under contract

Elan City Center Apartments

Almost complete, the apartments at the corner of Polk and Wilmington streets are about to open. 

Holy Trinity Church

Completed in 2015, the church is now open

Peace Street Townes

The 17 townhouses fronting Peace Street closed in 2015. This was originally going be a 4 story condo building in the earlier plan with $600k condos, so I'm sure the buyers here appreciated the more accessible pricing. Smaller 2 bedroom units sold in the mid $200's.

Now that this neighborhood is completed, let's hope that Gov McCrory's Project Phoenix will further activate the north end of town and the Government Complex to better connect it to the city core. 


Thursday, January 8, 2015

Downtown Raleigh's Highest 2014 Residential Sales per Square Foot

PNC Plaza Condos
In the last blog post we looked at the most expensive sales in 2014 by price, but another way to evaluate the market is by the most expensive price per square foot.  Of the 187 total sales within 1 mile of downtown, there were 17 sales that sold for more than $300/ft. 

The top 5 sales were condos, and 4 were at PNC Plaza, which based on previous condo analysis continues to command the highest price per square foot. 
  • PNC Unit 2801 - $366/ft
  • PNC Unit 2501 - $360/ft
  • PNC Unit 3101 - $357/ft
  • PNC Unit 2614 - $352/ft
  • Quorum Unit 915 - $347/ft
Residences at Quorum Center
PNC Plaza and the Quorum have historically been the only two condo buildings to consistently sell for more than $300/ft.  The views at PNC and the cache that comes with the fact that it’s the tallest building downtown are two main contributors to the high value.  It’s also one of the only buildings to have 24/7 security at the front desk. The Quorum is a very well built building and the only condo building with gas ranges. It’s a very different scene, though, and a much quieter building. 

Will we hit the $400/ft metric in 2015?  There are a handful of condos listed for that now, but they haven’t sold.  Unit 3306 at PNC is under contract and will close in February and was listed for $470/ft, but we won’t know what it sells for til it closes. I bet they’ll get more than $400/ft.  Another unit at Quorum is listed for $401/ft, but it’s been sitting for a while.  Back in 2010 the F units at Quorum sold for more than $400/ft.  But they haven’t gotten back to that level. 
North view from the PNC Plaza Condos in the fall

How does that compare to the rest of the US?  Check out this article that will give you some perspective if you think $300/ft is high. 

Monday, January 5, 2015

Downtown Raleigh’s Top 5 Expensive Sales in 2014

Investors and developers are flocking to Downtown Raleigh and the immediate area as evidenced by the visual changes that the average person can observe through the number of cranes and construction projects. The Citrix building sale and the Crescent Apartment building sale in Cameron Village just broke records.  But are residential buyers paying a premium to live downtown? I thought it would be interesting to look at the top 5 residential sales for 2014.  Within 1 mile of downtown, here are the top 5 most expensive sales in 2014 based on price. 

300 Hillcrest Rd in Cameron Park 
Grand 3000 sq ft home that had been owned by the same family since 1913. Being renovated by the new owners. 
Sold for $749,500.

Dawson Unit 400 
Large 3000 sq ft condo with 4 bedrooms, a rarity downtown. 
Sold for $680k.

Modest cottage that packs 3000 sq ft through a rear addition. Sold for $652,000 and the owners are renovating.

Bloomsbury Unit 706
Penthouse unit with 3 bedrooms, 2400 sq ft. Bank owned. 
Sold for $650,000. 

Quorum Unit 1405
Totally gutted and rebuilt, this 2000 sq ft 2 bedroom condo is one of a kind. 
Sold for $650,000. 

It’s interesting that there hasn’t been a sale for more than $1M yet in the “core” that I’m referring to as the 1 mile radius from the Capital.  There were a few sales in Cameron Park over $1M that were a bit further than a mile away from the downtown core.  The closest we’ve seen in the city center to date is the Bloomsbury penthouse that sold in 2010 for $900,000 (yep, it’s the same one that just sold this year for $650k).  Several condos have been listed for $1M+ and haven’t sold. Unit 3306 at PNC is under contract after dropping the price into the $900’s.  It will close in early February. 

The only property within 1 mile of downtown currently listed for more than $1M is a house in Cameron Park. Raleigh has so many luxury neighborhoods within just a few miles of downtown that you can have a lovely home and still be only a few minutes from downtown.  Hayes Barton is walkable to Five Points and had 3 homes this year sell for more than $1M. 

So, I guess the answer is, yes, individuals are willing to pay high prices to live downtown, but there seems to be a ceiling in the core (for condos at least) based on this data. Of course, it’s also a bit of the chicken and the egg situation, since most of the condo inventory was created in the last 10 years. 

I think that 2015 will build on this luxury trend and bring a few additional high value property sales, from homes in Oakwood and Cameron Park to luxury condos. We’ll see what PNC unit 3306 sells for and there’s a gorgeous unit at the Dawson that is currently listed for $850k. We’ll see what happens there.