Lake Norman | Q3 2024
Q3 Market Report contents
October 2024
Overall Market Report
Lake Norman Ultra Luxury Segment Sets Records in Q3 '24
Community Updates
Cornelius Davidson Mooresville
West Shore
North Shore
Concord & Kannapolis
Forecast
Lake Norman’s luxury segment will continue to flourish over the next few years
Lake Norman Ultra Luxury Segment Sets Records in Q3 '24
With tear-down activity now encompassing multiple lots incorporated into one ultra luxury project, top-end values in the Lake Norman area have surged over the past three to four years, a dynamic now reflected in record-setting sale prices when one of these flagship properties comes on the market. This summer, Ivester Jackson | Christie's agents set three consecutive Lake Norman resale records in 60 days, starting with the $11.5 million record setter on Belle Isle, which set a record for both Cornelius and Mecklenburg County. The property received multiple offers and was immediately followed by two similar deals at The Point, also brokered by IJ agents. This activity reflects the values now seen in the new construction market as multiple new projects begin to approach and exceed the $20 million mark, previously reserved for high-value large metros and flagship resort areas.
Charlotte's dynamic combination of benign climate, burgeoning young professional employment base, international airport, and proximity to Lake Norman, now one of the East Coast's premier destinations, all combine to point to a robust next three to five years in the region. Lake Norman has transacted 121 properties over $2 million in value thus far in 2024, compared to 93 in the prior year, which was also a record-setting year.
Cornelius
Continued tight inventory conditions in Lake Norman once again meant competitive conditions for buyers, particularly in the price ranges below $3 million in list price. Inventory in those ranges remains below quarterly sell-through, indicative of less than 45 days' inventory in Cornelius in the lower luxury price ranges. Cornelius has seen record-setting sales at the upper end, prompting other sellers to test the waters as activity has remained fairly solid despite the typical seasonal change and election uncertainty. Sales above $2 million in value exceeded last year ' s third quarter by 25%.
Cornelius Q3 Home Sales
Davidson
Davidson's luxury market continues to emerge as one of the region's most active segments, with 43 homes trading over $1 million in value in the third quarter, vs 30 in last year ' s same quarter, a whopping 43% increase. The sweet spot between $1 million and $2 million saw significant sell-through in the quarter and entered the fourth quarter with another 28 homes under pending contracts. Activity has continued to spread above the $2 million mark, while new construction offerings in the area have begun to line up to meet the upward trend in luxury demand in this preferred lifestyle choice destination.
Davidson Q3 Home Sales
Mooresville
In Mooresville, the third quarter’s sweet spot was the range of over $2 million, with 26 homes trading, including two deals above $10 million, vs. 20 deals in last year ' s third quarter, an increase of 30%. The lower segments of the luxury market saw even or slightly lower levels of sell-through as the summer came to a close, with inventory sitting at around 90 days in those segments. The fourth quarter is setting up to be slightly slower yet fairly robust for this time of year, with 11 homes pending over $2 million, including another IJ deal on Easton Drive in The Point at $6 million.
Denver | West Shore
After an average first half, the west side of the lake picked up dramatically over the summer, with all three luxury segments showing upward sell-through. The mid-market range below $1 million surged by 30%, while the range over $1 million in list price nearly doubled, with 31 deals closing vs 18 in last year ' s third quarter. Inventory to sell-through ratios remain healthy on the seller side, with slight increases heading into the fourth quarter.
Denver/West Shore Q3 Home Sales
North Shore
Troutman/Sherrills Ford
The Highway 150 communities at the north end of Lake Norman showed steady activity, roughly in line with sell-through in last year ' s third quarter. The range above $1 million in list price showed improvement, with a 15% increase in sell-through vs. the previous year.
The quarter ended with another 12 homes pending, while 43 were active on the market. This area continues to see solid activity, albeit with more balanced conditions relative to inventory ratios and pending contracts.
North Shore Q3 Home Sales
Concord & Kannapolis
Cabarrus County continues to post high levels of activity in the mid-market luxury ranges from $600,000 to $2 million in list price. The region saw a whopping 125 transactions just below $1 million in price, vs 88 in last year ' s third quarter. Above $1 million, the area continues to emerge with more activity, with 11 homes closing vs 10 last year, while inventory has increased to meet the growing demand in Concord, Kannapolis, and the southeast corridor of the county east of Charlotte.
Concord & Cabarrus Q3 Home Sales
Lake Norman Market Forecast
While not quite as robust in some areas as last year ’ s activity, summer showings have continued at a heightened pace relative to historic levels, certainly enough to maintain current pricing levels and continue elevating them. Given the area, it is difficult to imagine a scenario in which pricing in the ultra-luxury segment is now pushing up over the $10 million threshold and does not continue to trend upward significantly in the short term.
North Carolina’s popularity and Lake Norman’s proximity to Charlotte, a world-class airport, and a desirable climate continue to attract unprecedented interest from other areas. In our opinion, this has accelerated dramatically over the past 24 months, with new price point records validating the area ’ s long-term appreciation potential from sophisticated property investors coming from other high-value destinations.
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