LUXURY MARKET REPORT
Lake Norman | Q3 2023
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Q3 Market Report
contents October 2023
Overall Market Report Lake Norman Luxury Market Remains Solid Despite Rate Hikes
Community Updates Cornelius Davidson Mooresville West Shore North Shore Concord & Kannapolis
Forecast 2023 Looks To Close With Slightly Elevated Yet Still Historically Low Inventory
LAKE NORMAN LUXURY MARKET STAYS SOLID DESPITE RATE HIKES Lake Norman’s luxury real estate market plowed forward in the mid-fall period, with over 250 homes pending over $500,000 in list price, including 20 pending contracts above $2 million in list price. For the year, Lake Norman has seen 101 transactions over $2 million compared with 100 last year, indicative of the continuing demand for luxury property at the lake. Online page views and showing appointment requests continued to trend solidly, albeit off the year’s peak periods of late spring and early summer.
Lake Norman
Current Lake Norman Showing Trends: For the most part, average showing requests per house, according to the MLS, have remained somewhat steady as we move into late fall, with some slight decline manifesting yet still generating steady activity for this time of year.
$2 Million + Luxury Market: Surprisingly, sales of properties exceeding 2 million dollars in value are on par with last year's totals, with 2023's year to date closings exceeding last year's same period. The market has also seen more transactions above $6 million in list price this year.
Cash v. Conventional Financing
Cash v. Conventional Financing: In comparing the latest trend in cash closings, cash terms were more prevalent moving into the luxury ranges above $1 million and $2 million in list price, with over 50% of the deals closed at the $2 million level closing with cash.
Cornelius Tight inventory continued to dictate action in the Cornelius area, with quarterly sold activity exceeding current inventory levels in all three price segments. Closings in the upper end of the luxury segment were on pace with last year’s fall, including 7 pending contracts over $3 million in list price leaving 11 remaining homes active on the market.
Cornelius Q3 Home Sales
Davidson Davidson’s story continues to be the emergence of its luxury market over $1 million and $2 million, including a record-setting 7 million dollar sale during the quarter. The Davidson market saw 26 sales over the million mark compared with 21 in last year’s Q3, while 29 homes shown as active MLS inventory heading into Q4, with 24 more pending. Very healthy absorption rates continue to run below the 90 day mark thus far.
Davidson Q3 Home Sales
Mooresville Similar to Cornelius and Davidson, the Mooresville area continued to show high relative activity, particularly in the million-plus range, with 63 homes trading in the region over $1 million in list price vs 52 last year, an increase of 20% year over year. The area also saw 8 closings over $3 million, with 4 more pending contracts. At the same time, inventory in this ultra-luxury range did edge up to 13 homes active, or roughly 3-4 months of inventory absorption heading into the typically slower winter months.
Mooresville Q3 Home Sales
Denver | West Shore The West Shore area also saw solid activity over the million mark, with 18 homes closing vs 19 in Q3 last year. Pending activity trended slightly, with 5 homes pending on inventory of 14 active homes, roughly 3-4 months inventory in the range. Sold activity continues to keep inventory and prices at stable levels.
Denver/West Shore Q3 Home Sales
North Shore Troutman/Sherrills Ford While the North Shore area has slowed somewhat from last year (58 million dollar sales YTD vs. 76 last year), the third quarter saw solid results, with 21 homes closing over $1 million in value vs 25 in Q3 last year. The area also saw Q4 start with 10 more pending contracts with 18 actives remaining, roughly 60-70 days absorption in the upper range.
North Shore Q3 Home Sales
Concord & Kannapolis Cabarrus County continued to show high activity between $600,000 and $1 million in list price as the once rural county continues to attract more development and amenities. Million dollar activity remained steady with 10 sales in the quarter vs 9 last year and 3 pending contracts leaving active inventory remaining at 10 listed properties.
Concord & Cabarrus Q3 Home Sales
Lake Norman Market Forecast 2023 Looks To Close With Slightly Elevated Yet Still Historically Low Inventory
The Lake Norman market has held steady much of the second half of 2023, with high demand areas and price ranges in places like Davidson and Cornelius showing 30 days or less inventory in the lower price ranges, while the rest of the lake displayed 60-90 day inventory levels. The trend in both showing appointments and online page views has dipped from summer peaks, yet in many areas showing appointment requests remain in line with last year’s fall, despite rates cresting 8% at times. Strong employment and financial market levels continue to drive activity along with inbound migration trends to much of North Carolina. Some 20 million people will migrate to the Sun Belt states by 2030, with North Carolina the third most popular choice thus far, indicative of continued opportunities for price appreciation given the area’s lower than historic level inventory positions. While leveling from extreme frothiness, the upper end of the market continues to see price ceilings increase, as closings above the $7 million range and pushing the $10 million range have begun to surface. New construction projects are also pushing up into the $15-20 million range.
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