Imagine enjoying expansive views of Lake Norman like this one from your own home! You can choose sunrise or sunset views, private coves or the main channel like the lot above. This is why Lake Norman is still such a popular destination for folks from all over the country. ( I have also represented buyers from Russia, England and Australia!).
Waterfront homes are a unique real estate niche in the Lake Norman area and really need to be separated from the rest of our housing market when determining the current sales trends, the direction of prices and predicting the short and long term future.
This first chart provides an overview of our Lake Norman waterfront home sales since 2005. Note that while the average prices have dropped consistently since 2008 our volume of sales has been increasing since 2008! Our sales so far in 2011 are already equal to those of last year. (Note that our number of active listing has dropped significantly from 2009.
Here is a brief overview of the past 6 months of sales compared to the same period last year. As you can see our sales are up 14% but our average price is down 11%.
As you can see by this price range analysis for the past 6 months, our strongest price ranges are below $500,000 followed by $1 million – $1.5 million and then $700,000 – $999,000 based upon our months of supply of inventory.
In all of 2008 we only sold 16 waterfront homes below $500,000 and 31 in all of 2009 compared to 50 so far this year. Clearly prices have come down substantially since 2007/2008.
During this same 6-month period we only sold 23 waterfront distressed properties (shortsales/foreclosures) which represents 14.8% of our total waterfront sales and we only have 26 distressed waterfront properties currently for sale.
- Overall, our averages prices have dropped consistently since their peak in 2008 however they never dipped into the 2005 average prices
- The number of waterfront home sales bottomed in 2008 and have improved every year since then
- The number of active waterfront listings has decreased significantly
- The sales price per-square-foot goes up dramatically with the prices of the homes.
- Distressed properties no longer represent a significant portion of our waterfront real estate market
The Lake Norman waterfront housing market was hit very hard by the recession. But, it appears to be over the hump and strengthening. With inventory shrinking, sales improving and prices historically low, this is the time to seriously jump off the fence. What I have found is that the properties under $1.5 million with “good” water and in good condition are selling or have sold for the most part so the majority of our inventory of active listings have issues ranging from the age and condition of the home, the location, depth of the water and the quality of the views. One great opportunity right now is fixers or tear-downs on good waterfront lots!