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Prices for high-end homes surge, straining market further

Across the United States, 8% of homes on the market are priced over $1 million, according to Redfin.

MECKLENBURG COUNTY, N.C. — While Redfin reports that 8% of homes across the U.S. are more than $1 million, Charlotte is seeing around 4%.

It underscores just how hot the housing market has been and the way it remains today.  It's adding value to homeowners, but also discouraging potential buyers from a market with dwindling supply.

The eastern half of the U.S. continues to add seven-figure homes the fastest. Elevated mortgages coupled with an interest rate that's near 7% are creating a volatile environment that's keeping many out.

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"It's really hard to get into the housing market with this many homes priced at or above $1 million," Redfin's chief economist Daryl Fairweather told WCNC Charlotte. "Those that do sit below that threshold, there aren't many and much less of a selection that there used to be. The rates make buying a home potentially thousands of dollars more in some of these pricier markets."

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In a growing city like Charlotte, first-time homeowners are competing with people that come from a more expensive market with cash in hand.  That type of competitive advantage where demand greatly outweighs supply is an environment that's highly competitive.  

More people seem to be choosing condos for starter homes.  With more inventory out there, they are much less expensive and more suitable for first-time homebuyers.

Contact Colin Mayfield at cmayfield@wcnc.com or follow him on FacebookTwitter and Instagram.

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