The Point in Mooresville NC is arguably the most prestigious luxury community in all of Lake Norman and it is also the largest with 18 miles of beautiful Lake Norman’s shoreline. Those of you who are regular readers will know that I like to monitor the sales trends at The Point to glean more insight into our Lake Norman luxury home market.
I have been noticing some notable trends in The Point recently; an increase in sales and a drop in active listings both of which bode very well for The Point and may be an indication of other micro-real estate markets around the lake.
To put this into context, back on March 10th 2010 I wrote: The Point, Lake Norman’s Ultimate Luxury Community: A 9-year study which provided a good long-term overview of their sales. And, looking back to September 18, 2008 I wrote: The Point in Lake Norman: A Case Study #2. In this report I noted that we had 123 active listings which translated at the time to a whopping 41-month supply of inventory! Again, in: Lake Norman Real Estate: Affordable Housing at The Point…Wow! on July 25, 2009 I noted that we had 114 active listings and had sold 19 homes since the beginning of the year for a 38-month supply of active listings.
The number of active listings in The Point has plummeted since then. Today, with only 71 active listings, that represents a drop of 42% since 2008 and 38% since July of 2009. These numbers are substantially better than our overall Lake Norman housing inventory which remains quite high.
But, it gets even more interesting when you look at the recent sales numbers. Since January 1, 2010 we have closed 19 sales in The Point which is a significant jump from the same period in 2008 and 2009. ( We sold 7 homes in the same period in 2009, 11 homes in 2008 and 21 in 2007 which some consider to be the peak of our market).
At an average of 5 sales per month, this means we are down to a 14-month supply of homes in The Point! Given that 6-8 months of inventory is considered a balanced housing market, The Point is almost there. This is an astounding improvement in a relatively short period of time.
What about prices? The average sale price per square foot has dropped 26% from 2007’s $274 to $203 per square foot. ( This includes both waterfront and non-waterfront homes). The average sales price for waterfront homes at The Point since January 1, 2010 was $271 compared to 2007’s $318 or a drop of 14.8%. Our 2010 non-waterfront average sales price was $161 or a drop of 29% from 2007’s average of $228. This is almost 10% per year.
Here are some interesting statistics related to homes at The Point:
- 71 today, April 27, 2010
- 82 in November of 2009
- 114 in July of this year (months of supply = 38)
- 123 in September of 2008 (months of supply = 41)
- Peak of about 140
Pending Sales: 6
Conditional Sales: 13
Contingent Sales: none
- 19 (since 1/1/2010
- 7 (same period in 2009)
- 11 ( same period 2008)
- 21 (same period 2007)
- Year-to-date 2010: 19 closed sales plus 19 conditional and pending = 38!
- All of 2009: 41
- All of 2008: 33
- All of 2007: 76
Price ranges of homes currently on the market:
- $400,000’s: 1
- $500,000’s: 3
- $600,000’s: 6
- $700,000’s: 8
- $800,000’s: 12
- $900,000’s: 4
- $1 million – $1.5: 21
- $1.5 – $2.0 = 7
- $2million + = 9
- $2,695,000 (Days on the market: 792)
- $3,399,000 (Days on the market: 915)
- 12 of the 19 sales year to date were under $1 million.
There is no doubt that the foreclosures, short sales and bargains, especially under $1 million, are dominating the recent sales. 13 of our pending and conditional sales or 68% of the recent sales were listed for under $1 million yet only 42% of the active listings are under $1 million. Savvy buyers are jumping off of the fence and gobbling up the bargains! However, the luxury homes that have been sitting for up to three years are now selling a few at a time as well. Is The Point leading the way for a Lake Norman real estate market recovery?