Waterfront homes on Lake Norman historically have marched to the beat of a different drummer. Until about March of 2007 our waterfront homes and lots were appreciating at a much faster rate than the non-waterfront homes throughout the Lake Norman area. Because we have a finite number of watefront lots/homes, the limited supply and high demand is in stark contrast to most of the greater Lake Norman area where land is still plentiful. Traditionally, the average price of a Lake Norman home is about twice the price of a waterview home and more than double the price of a home without a waterview or lake access/boatslip.
2008 Spring/Summer Waterfront Trends
|Conditional & Pending Listings||40||38||26|
3 Month Sales 2008 Versus 2007
|6/15/08 – 9/15/08||6/15/07 – 9/15/07||% Change|
|Average Sales Price||$1,037,294||$855,148||+21%|
- The number of active waterfront listings dropped slightly (7%) since July which is a good thing. However we still have a 38.5 months of supply which is about 4 times what we should have in a balanced market but an improvement over my last waterfront market report.
- The number of Conditional, Contingent and Pending sales are slightly higher than July and almost double our April numbers
- The number of closed sales for the same 3-month period in 2008 versus 2007 dropped 40% which is actually better when compared to the entire Lake Norman homes sales but still not a good trend.
- The average sales price in this same period increased by 21%! We had 11 properties at $1 Million+ or 24% of our sales and 5 of these were over $2 Million with one sale @ $4.7 million. In the same period last year we had 17 sales $1 Million+ or 22.6% with only 3 sales at or above $2 million.
Recently I have been showing waterfront properties in just about every price range. What I have noticed is some significant price reductions in the lowest priced waterfront homes on up to about $1 million. Many of the homes are vacant with listing agents indicating that the sellers are very motivated.
In the higher-end waterfront homes I am not seeing as many price reductions. However, it is worth noting that the property that sold for $4,700,000 had a listing price of $5.7 million…so they negotiated a sale for $1 million less than the listing price.
While not a huge difference, we may just be seeing the first signs of improvement in our Lake Norman real estate market. Perhaps our waterfront homes will be the first to trend upward. We will watch and see!
* Special thank you to Chris Lowery for the use of his photo