LUXURY MARKET REPORT Highlands-Cashiers Plateau Q3 Market Report
contents Q3 Market Report | November 2023 MARKET REPORT Mixed results across the region with sales up in select markets and price ranges, while others are seeing a dip in the action. Limited inventory in many price segments could stifle sell-through in the 4th quarter of 2023.
COMMUNITY UPDATES Highlands Cashiers Lake Toxaway/Sapphire
FORECAST Lean inventory in some segments, coupled with rising interest rates, could stunt growth moving into the latter part of 2023, especially in the more rate sensitive midmarket segment ($600-999K). Demand has stayed fairly steady in the near term, which should prove to buoy values heading into 2024.
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3rd Quarter Luxury Market Report
Current Trends Sales activity in the ultra-luxury ($2M+) has seen a boom in the 3rd quarter of 2023 in both the Highlands and Cashiers market areas. This points to growing demand and a robust selling season during the latter part of summer and the traditionally hot leaf season. The luxury ($1.0-1.99M) segment has also fared well during the 3rd quarter in both Highlands and Cashiers, but has seen a cooling effect in Lake Toxaway and Sapphire.
HIGHLANDS Highlands has continued its steady rise in the luxury realm as buyers from larger metropolitan areas such as Atlanta, South Florida, and Birmingham have flocked to the region during the summer and early fall months. The cool climate and its robust arts and dining scene continue to attract tourists from all over the country, winning many travel awards and mentions during 2023. Both the luxury ($1.0-1.99M) and ultra-luxury ($2M+) segments continue to see sales numbers that not only best Q3 2022 sales numbers, but also triple those sales numbers in some cases. The ultra-luxury range saw sales rise from only 4 sales during Q3 2022 to 17 in Q3 of 2023, which equates to a 325% increase in year over year production. On the flip side, the mid-market segment has seen an erosion of sales activity mainly attributed to rising interest rates coupled with diminished inventory coming onto the market. Properties currently under contract to purchase also appear to be stable. The 4th quarter typically starts to see less traffic and sales activity heading into the holiday season.
LAST
HIGHLANDS
Q3 Homes Sold
SIX MONTHS
CASHIERS Sparse housing inventory has continued to hamper sales in Cashiers across all price segments. Notably only 6 properties are currently on the market in the $600-999K range, which represents less than 2 months of active inventory. Sales in the luxury price point remained steady with 12 closed transactions in Q3 of 2023 as compared to 11 during the same time period in 2022. The ultra-luxury segment was down year over year. Yet pending sales heading into the 4th quarter are already sitting at 14, which points to a robust 4th quarter selling season. Lack of inventory will continue to affect sales numbers heading into 2024, specifically in the mid-market and the luxury market space.
LAST SIX MONTHS
CASHIERS
Q3 Homes Sold
LAKE TOXAWAY & SAPPHIRE The Lake Toxaway and Sapphire markets continue to be a tale of two price points. The mid-market has seen a surge in sales activity, while the luxury and ultra-luxury range has seen a diminishment in sell-through during the 3rd quarter. The mid-market has almost doubled from 13 sales in 2022 to 24 in 2023. This has proved to be the sweet spot for now, but the issue long term will be the lack of viable inventory as housing stock is sitting at less than three months currently. Both luxury and ultra-luxury properties have seen inventory continue to climb while sales have been cut in half. Those factors could lead to further price cuts and to a continued rise of average days on the market. We will continue to monitor this market, as Lake Toxaway has traditionally been very strong in the spring and summer months with limited inventory and high demand that tend to push values up historically.
LAST SIX MONTHS
LAKE TOXAWAY & SAPPHIRE
Q3 Homes Sold
RECENTLY OFFERED
747 McConnel Road Scaly Mountain, NC
$8.950,000
3709 Whiteside Cove Road | Highlands NC $699,999
TBD Owl Hollow Road Cashiers, NC $2,595,000
16 S Sassafras Court | Highlands, NC $2,975,000
HIGHLANDS REGION MARKET FORECAST Limited inventory in many price segments could stifle sell-through in the 4th quarter of 2023. As noted in the Mid-Year Market Report, we are continuing to see varied results across the region as it relates to sales, pending/under contract, and active inventory. In areas such as Highlands, ultra-luxury sales have skyrocketed 3 fold as compared to 2022, while the same price segment in Lake Toxaway has seen an erosion of sales activity. Moving into the 4th quarter we expect to see mixed results continuing to rule the market. Currently, both potential buyers and sellers are sitting on the sidelines waiting to see how financial markets and interest rates will fare heading into 2024. We are seeing similar results not only across Western North Carolina, but also across the state in larger metro areas, as well as in smaller coastal towns. North Carolina continues to be a hotbed for inbound migration from regional and national cities. Furthermore, 2nd and 3rd home buyers during periods of volatility (due to financial market ups and downs as well as the impending election cycle) will continue to be looking for a sound investment. We predict the warmer, early spring months will bring an influx of buyers to the localized market which should trickle down to elevated sales activity during the traditional selling season across the Highlands-Cashiers Plateau.
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CHECK OUT OUR WNC Q3 LUXURY MARKET REPORT Sell-through across the region has been a mixed bag with some areas up year over year, while other areas have seen a slight dip in the action. To read our Q2 2023 Western North Carolina Luxury Market Report, please visit the link below. https://bit.ly/3RkloBB