Q2 Lake Norman Luxury Market Report

2nd Quarter Luxury Market Report

L A K E N O R M A N S E E S M I D - L E V E L L U X U R Y M A R K E T S U R G E

The luxury real estate market at Lake Norman continued its multi-year surge for the most part, as homes in the price segment between $500,000 and $2 million in list price saw a surge in activity over the past 60 days compared with the same period last year. Davidson, Cornelius, the west shore area, as well as the north shore area above the highway 150 bridge, all saw double digit increases in sell thru as the second quarter came to a close. Low interest rates, solid economic indicators, and corporate relocation drove higher showing and contract activity in comparison with 2018’s spring. The ultraluxury segment above $2 million, after a strong start to the year, saw some flattening, although new construction custom activity continued to snare a significant portion of the high end market. As the quarter ends, showing activity, which had run ahead of 2018 for much of the last 6 months, has flattened to be more in line with 2018, indicating solid, but not as heated market conditions as we saw in the early spring.

C O R N E L I U S

The mid-level market below $2 million in list price saw active conditions, with 45 homes closing vs 35 the same period last year. The upper-end market above $2 million saw a decline from 7 closings last year to 4 this year, after starting the year on a torrid pace. Tight inventory in Cornelius continues to cause some fluctuation in sell thru as buyers evaluate options in price segments that in some cases have limited inventory. Inventory in The Peninsula stood at 26 homes vs 30 homes sold the past 6 months and just 8 homes available under $1 million. New construction/tear down infill continues to be an option for buyers in the ultra-luxury market, as several million dollar lots closed during the quarter.

CORNELIUS Q2 HOMES SOLD & SHOWINGS

Listings Cornelius

Sold Cornelius

D A V I D S O N

As is usually the case, Davidson’s more traditional family driven real estate cycle spiked as the summer months and school vacation periods approached. 33 homes closed between $500k and $1 million over the past 60 days vs 23 during the same period last year. While the million dollar saw limited closing activity in the quarter, there were a healthy 5 homes pending above $1 million in Davidson as the quarter ends. Inventory in River Run stood at 29 active listings vs 37 homes having sold over the past 6 months. Fairly balanced conditions for buyers and sellers.

DAVIDSON Q2 HOMES SOLD & SHOWINGS

Listings Davidson

Sold Davidson

M O O R E S V I L L E

Posting a slightly disappointing quarter, Mooresville was somewhat the outlier in the Lake area with luxury sales declining from 94 homes sold last year to 77 over the past 60 days. Conditions in The Point have been steady yet inventory at 55 homes vs 33 sales over the past 6 months stands at roughly 9 months in the lower price segments and over 1 year in the luxury price points. Mooresville also seems to be impacted by new construction and attractive values available in the north shore area of Troutman, as the expansion of express lanes on I-77 have now made waterfront locations above highway 150 more attractive. Mooresville does appear to be lined up for better performance in the 3rd quarter with 60 homes pending.

MOORESVILLE Q2 HOMES SOLD & SHOWINGS

Listings Mooresville

Sold Mooresville

W E S T S H O R E

Despite lower showing activity, the West Shore area of Denver and Terrell recorded a healthy increase in sell thru compared to last year with 45 luxury homes closing over the past 60 days, vs 36 in the same period last year. The area saw 4 homes sell over $1 million vs 2 the year before, and the quarter ends with 22 homes under contract in the mid-level segment and 2 in the segment above $1million.

DENVER | WEST SHORE Q2 HOMES SOLD & SHOWINGS

Listings Denver/West Shore

Sold Denver/ West Shore

**3423 Governors Island Drive | Under Contract**

N O R T H S H O R E

The areas on both sides of the lake above the 150 bridge have continued to see high growth, with sell thru doubling over the past 60 days in comparison with the same period last year as 24 luxury homes closed vs 13 in 2018. 5 homes closed above $1 million as the benefits of newly added amenities like the mixed-use project near Sherrills Ford and the potential improved access via the express lanes on the east side improved options for buyers.

NORTH SHORE Q2 HOMES SOLD & SHOWINGS

Listings North Shore

**101 Island Ridge Rd | Under Contract**

L A K E N O R M A N M A R K E T F O R E C A S T

The Lake Norman luxury real estate market enjoyed a solid first half of 2019, with most communities recording increased sell thru in the midlevel luxury market segments. Lower interest rates, solid corporate performance, and continued relocation to the region from elsewhere continued to drive home sales. The ultra luxury market over $2 million posted similar results to 2018, with some new wrinkles appearing in places like Mooresville, where activity in the ultra-luxury segment over $2 million has spread to areas outside The Point, which has dominated Mooresville’s ultraluxury market for two decades. The Point remains highly appealing, the area is following Cornelius’s pattern of seeing infill luxury building on great water adjacent a flagship planned community.

For the first time in over 12 months, showing activity at Lake Norman has flattened to mirror the prior year’s activity after running 15-20% ahead of the first half of 2018 through May. This decline should be taken somewhat with a grain of salt as the region has enjoyed A+ conditions the past 6 months, the 3rd quarter is likely to be A+ in some areas and segments ($500-999k range) while still a solid A- in others. Many areas are on pace to post record sales years in certain price ranges, so as is always the case, its important to understand the micro-climate conditions in each particular community and price point.

Q2 Lake Norman Luxury Market Report

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Q2 Lake Norman Market Report