there is a new neighborhood that just broke ground in raleigh with homes in the six
millions are prices that high gonna fly here in raleigh and what does it mean for housing prices
throughout the area will we see even more luxury development while moderately priced housing gets
harder to find we're going to find out i talk to people every single week about moving here to
raleigh north carolina and we are definitely getting plenty of people with the means to
purchase luxury homes but in any market luxury is relative and while there's no standard definition
of luxury some people define it as properties priced at three times the median home price
in raleigh at the time of this video the median home price is 345 000
so luxury would start somewhere around 1 million incidentally high-end homes are i usually consider
homes that are twice the median value so in raleigh that would be about 690 000 but
we're not talking about those homes today it's just a little bit of perspective for how high
a six million dollar price tag is here in raleigh it's ten times the value of a high-end home last
thursday ground was broken at shadow creek estates a new luxury home community in north raleigh
i think luxury is probably the wrong term because homes in shadow creek will range from 2 million
all the way up to 6 million which we just saw is way higher than our current luxury inventory
we need a new term like uber luxury or mega luxury now those of you tuning in from la or
seattle or portland or any of those excruciatingly expensive cities out west are probably thinking
big deal 6 million bucks but this is raleigh we don't have 6 million dollar homes in raleigh and
i mean that literally so the big question is can raleigh really support a new neighborhood
with homes in the six millions and if it does fly will that have an impact on housing costs
in the area let me start with some facts in wake county in the entire history of the mls there has
never been a home sold that was priced as high as six million dollars never the highest priced home
in wake county in the history of the triangle mls was 5.5 million dollars if we look a little
further out at the entire area that's covered by the mls which i think is 17 counties i counted it
once before but i can't remember now and i don't feel like counting again anyway i think it was 17
counties but in that entire 17 county area there have been two homes that have sold for more than
six million dollars i'm going to show them to you don't worry and we're going to see if we
think a whole neighborhood of homes in this price range is going to fly here in raleigh if not a
year or two from now there might be some really nice uber luxury homes on the market for a deal
so let's take a look and then i'll tell you more about the new subdivision the first home
that closed for over six million dollars was 483 rosemont drive in durham this home sold in 2017
and interestingly it is back on the market today and it's been on the market for 400 days
and you might think well it's expensive expensive homes take longer to sell but you would be wrong
in raleigh since january first of this year the median days on the market for homes between one
and three million dollars was two days the average was 31 days so they don't take that long to sell
when rosemont drive sold in 2017 it sold for six million three fifty and now it's currently listed
for six million nine hundred thousand now when you're pricing a home like this there really are
no comparable properties in the triangle so it can be really hard to settle on the right number
and this property is truly a stunning property and the thing about uber luxury homes is that you
really are buying a piece of art when you buy a home that's priced more around the median or even
high end you're buying something that's been built for mass appeal but luxury homes are custom built
to the taste of whoever built it or commissioned it so it makes it even more tricky to market the
home anyway look at this beauty this happens to be very much my style or at least one of my styles
i should have been independently wealthy because i would be perfectly happy with five homes in five
different styles but this one's got that beautiful english cottage look this property is over 15 000
square feet and it sits on 12 acres it's actually located in chatham county which is a pretty rural
county and this home is right on the border of cary so this area feels more like west carry than
durham although it's equidistant between the two at 24 minutes to either of the downtowns and it's
about 10 minutes from shopping and the whole foods market in west cary okay so that's property number
one which is sitting on the market the second property to ever be listed in the mls in the
uber luxury range is actually priced even higher at 8 million 440 devin drive is way out in the
country and it's a beautiful equestrian estate sitting on over 300 acres this property is not
really part of the triangle at all it's more than halfway to the beach it's 88 miles from raleigh
and 61 miles from wilmington so i don't think it gives us much information about what people are
willing to pay here in raleigh but it does give us some very traditional looking eye candy so those
two homes i have the feeling are very different than what will be built in this new neighborhood
first of all those homes are older getting close to 20 years old at this point this isn't
necessarily a bad thing but a lot has changed in new home construction in the past 20 years
it may be that homes can command that price in our current market when the home is built with modern
features technology and amenities but i think the biggest issue is that both of those homes
that we saw were single estates they weren't an entire neighborhood where you would have neighbors
and could make friends if you think about it the market for these homes likely is coming from other
higher priced areas so people aren't going to already be connected to friends in this area
an entire neighborhood of luxury homes of this caliber might be much more appealing to someone
relocating from another city than in a state that's relatively far removed from people in
an area where you don't know anyone personally i really like an estate i like it to be completely
unique with nothing that looks like anything else in the area but a new city where you
have no friends i can definitely see the appeal of a subdivision now let's talk about the new
neighborhood in raleigh that's going to be selling homes in the multi-millions shadow creek estates
is going to be up here north of 540 between six forks and falls of noose road that's not a big
surprise to me that area is already where some of the most expensive homes in the triangle are
this area is in the falls lake watershed which means that there's a limit to how small the lots
can be so you see a lot of homes sitting on big beautiful lots out in this area the neighborhood
will be situated on a 61-acre plot divided into 31 homes and there will be 15 acres of open
green space which means the lots will average about an acre and a half lloyd builders who's
developing the neighborhood says the style of the homes will be timeless classic architecture homes
are gonna start in the two millions and go to the six millions so it's not an entire neighborhood of
six million dollar homes which is probably good the land does look really pretty and appears to
be very gently rolling like much of raleigh no steep cliffs with sweet being views or anything
like that each home site's designed to support a pool and they have options for other amenities on
the lots such as sports courts or pickleball courts or basements it looks like a lovely
community very typical of what i would expect in raleigh personally i still have a really hard time
seeing raleigh commanding six million dollars for a home in a subdivision without that little bit of
extra pizzazz that we usually see in higher luxury priced homes i took a look in a couple of cities
that are often competition for raleigh even though they're both a bit pricier than raleigh but not
too much in austin you can get a home like this one with panoramic lake views and this really cool
boat dock below we don't have cliffs in raleigh or this condo in the city with sweeping views of the
austin skyline right in the middle of everything both of these homes were 3.9 million dollars
in boise idaho you can get mountain views for just over 3 million or for 3.9 you can get waterfront
with distant mountain views beyond and here's another thought even if you look at those areas
with really high housing prices like la you still get some kind of a view or superior location when
you're getting into the multi-millions this is in la 3.9 million dollars overlooking the city
in my opinion these are the real homes that are competing with the new homes in raleigh
because let's face it to some degree our market has become a national market and other cities with
similar quality of life throughout the country are our competition do i think they're gonna
sell those six million dollar homes in north raleigh yes i do but there are only 31 homes
in the whole neighborhood and how many of those will be in the six millions maybe 10. raleigh's
best feature is its quiet and charming lifestyle we still really do have a small town feel when
compared to some of these cities people are moving from maybe that's what you get here instead of a
view tell me what you think in the comments below are multi-million dollar luxury homes the future
of raleigh and the next important question we have to ask is what about the effects of this
luxury market on the median home price in raleigh if builders really can sell these uber luxury
homes will they start concentrating on luxury and not provide the inventory we desperately
need in more affordable housing this has got to be a discussion for another video but i'll leave you
with a sneak peek of some information i found that shows that the answer isn't simple i found this
article in the atlantic entitled america needs more luxury housing not less this my friends is
a boiling kettle discussion about what it really takes to provide fair and equal access to housing
not just in raleigh but in the u.s and there are many sides to the discussion but that's going to
take some deeper digging on my part before i can speak intelligently about it so you might
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