With 520 miles of shoreline, waterfront homes are an important segment of our Lake Norman real estate market. Before the recession hit, waterfront homes appreciated at a much greater rate than off-water homes. Since the beginning of our recession, waterfront home sales dropped more significantly for the most part because of the fact that they are priced above the conforming loan rate ceiling of $417,000.
In 2010 about one-third of my sales have been waterfront and I would guess that more than three-fourths of my longer-term buyers are waterfront so I am fortunate enough to be actively participating in this segment of our Lake Norman real estate market which enables me to gain insight into micro trends as well as macro.
Last winter was probably the bottom of the waterfront housing market in terms of volume. The hottest price ranges then were under $700,000. However, this summer we saw a flurry of activity in the $800,000 – $1,200,000 which then slowed but seems to have picked up again in the past few days.
I decided it would be interesting to take a look at our waterfront home sales for the past three months and compare them to the same period of 2009:
As you can see, in the past three months our waterfront home sale were 23% higher than in 2009. And, the average sales price has increased 5%.
What is more telling, in my opinion, is the average price of the 28 pending sales and the 35 conditional sales. Clearly, there has been some increased activity in our $800-$1.2 million price range.
Averaging about 20 sales per month means that we still have 22 months of supply of waterfront homes for sale which is still very high. It will be very interesting to see what winter brings!