Living in a waterfront home is the ultimate goal of many who move here. Our downturn in housing prices since the recession opened a window of opportunity for many who couldn’t afford a waterfront home at the peak of our market. However, our Lake Norman real estate market is well in to its recovery. And, with distressed properties representing only 3% of our current inventory, clearly they no longer are a factor in our waterfront housing market as well as our overall home sales. It is important for potential home-buyers and sellers to know as much as possible about our waterfront home prices in the context of where they have been and where they are trending. To assist with this, I have done a detailed analysis of our 2013 waterfront home sales including annual, area and price range numbers:
Overall Lake Norman waterfront home sales by year since 2005
* All data is from the Charlotte Regional Multiple Listing Service
As you can see, the number of Lake Norman’s waterfront home sales has been steadily improving since their low in 2008 with 2013 being the best year since 2005. However, our average sales price has only been on the rise since 2012. At $793.742 in 2013 they increased 1.7% over 2012 and are well below our record high of $982,345 in 2008. Finally, our average price per square foot for waterfront homes that sold in 2013 was up 4.7% from 2012 and are nearly back to our 2009 numbers but still significantly below our peak of $270 per square foot.
Lake Norman’s waterfront home sales by area
As you can see, our waterfront home sales increased 19% in 2012 compared to 2012, our average sales price increased only 2% but our average sales per square foot increased 5%. There are significant variations within the 5 different areas surrounding Lake Norman.
Area 13-1 is the northeast side of the lake including Mooresville north of Hwy 150, Troutman and Statesville. This area was particularly hard hit by the recession because this is where new construction was exploding. After the downturn started it had a greater number of foreclosures/distressed sales due to the inventory of “spec” homes in subdivisions that were just getting off the ground and then failed. Now many of the failed subdivisions are back in business but with slightly lower-priced homes. Sales volume increased 58% in 2013 but the average sales price and price per square foot actually dropped. This is still the weakest area on the shoreline of Lake Norman.
Area 13-2 is all of Mooresville south of Hwy 150 to the Iredell/Mecklenburg county line including the Brawley School Rd peninsula and The Point. Last year this area exploded with a 43% increase in sales in 2012 but in 2013 it softened a bit with a 15% increase in sales and a slight drop in the average sales price. The good news is that it had a 7% increase in the price per square foot. I think these numbers reflect a soft luxury housing market. For some reason Cornelius, as you will see below, got the lion’s share of high end sales in 2013.
Area 13-3 represents all of Mecklenburg County including Davidson, Cornelius and Huntersville which are on the southeast side of Lake Norman. This area gets a gold star for its 30% increase in sales, 11% increase in the average sale and logging an average $242.9 per square foot, the highest in all of Lake Norman in 2013. Inventory was lower throughout the year in Area 13-3, particularly in The Peninsula and demand seemed to by stronger for luxury homes than in its Mooresville sister community The Point.
Area 13-4 is the southwest portion of Lake Norman including the unincorporated town of Denver in Lincoln County. This area had a 10% increase in sales in 2013 with an average price decrease of 6%. However, the average $ per square foot increase was the highest in all of Lake Norman logging in at +13%. At $195 per square foot Denver offers slightly less expensive prices for the same size homes than on the southeast side of Lake Norman however they are increasing more quickly than all areas of Lake Norman. Denver was slower to recover but appears to have picked up steam.
Area 13-5 is the northeast Catawba County area which includes the towns of Sherrills Ford and Terrell. This area only had a 2% increase in sales in 2013, a 6% decrease in the average sales price and modest 2% increase in the average sales price per square foot. With the lowest average sales price on all of Lake Norman’s shoreline, the affordability clearly attracted waterfront homebuyers who didn’t mind being a bit farther from shopping and restaurants. This area also has far fewer luxury homes and more older, more modest neighborhoods which should be taken into account when looking at the prices.
Overall, Lake Norman currently has 303 waterfront homes on the market which is a 9 month of supply of inventory based upon our 2013 sales. Keep in mind that a balanced housing market has 6-8 months of supply of inventory so it is still a buyers market for waterfront homes on Lake Norman.
Here is a fascinating breakdown of all of Lake Norman Area 13 waterfront home sales by price range in 2013:
As you can see, I have provided the number of sales, the percentage of the total sales, the number of active listings today, the percentage of the total active listings and the months of supply for each price range.
The best way to use this chart is to pick your price range, let’s say the $700,000’s. In 2013 there were 46 waterfront home sales in the $700,000’s which represents 11.39% of the total Lake Norman waterfront home sales of 404. Right now, there are 39 active listings in the $700,000’s which represents 12.87% of our current inventory of waterfront homes for sale. Based on these numbers Lake Norman has a 10.2 month supply of homes in this price range which means they are in a buyers market. The lower the months of supply the better for sellers. And, the $700,000’s represent 11.39% of our sales in 2013 but right now are 12.87% of our inventory so we have more inventory that we do sales indicating again that this is a slower price range than others.
Obviously, waterfront home priced over $2 million are still lagging in sales.
Hopefully you will be able to use these charts to better understand Lake Norman’s waterfront real estate market both by area and price range. If you have any questions don’t hesitate to call or email me!