Lake Norman Luxury Market Report – 1st Quarter
Lake Norman recovers from December softness to power into 2nd quarter 2019.
Following the 4th quarter of 2018’s slowing due to stock market volatility and rising mortgage rates, the Lake Norman market recovered from initial softness in sell thru during January, to power to a strong end to the first quarter. Pending contracts and increases in showing demand in February and March translated into balanced to seller friendly conditions in many areas, particularly the mid-market segment below $1 million in list price.
Inventory conditions in most segments stood at well below 6 months in that popular price range, while the ultra-luxury segment continued to move at a pace similar to 2018.
Cornelius posted mixed results in Qtr 1, with the mid-market luxury segment posting a strong gain from 16-23 sold units, while the range above 1 million was slightly off. Like many of the other markets, the quarter ended with a surge in pending contracts including 33 in the range below $2 million.
Showing activity remained very active and on par with the strong first quarter of 2018. There are a total of 35 pending contracts on the inventory of 85 active homes making for pretty balanced conditions.
CORNELIUS Q1 HOMES SOLD & SHOWINGS
LISTINGS CORNELIUS SOLD CORNELIUS
While the first quarter in Davidson was flat compared to last year’s 1st quarter, low rates and low inventory spurred 36 pending contracts to end the quarter including 7 over $1 million in value. A strong showing for Davidson’s emerging million dollar market.
Showing activity was stronger than last year’s first quarter, with the million dollar ranging seeing 100% increase in showings on the available listing inventory. With 74 homes actively listed, the popular Davidson area boasts under 6 months inventory.
DAVIDSON Q1 HOMES SOLD & SHOWINGS
The Mooresville area saw significant sell-thru in the mid-market luxury segment below $1 million with 47 homes closing just below $1 million in list price, up from 35 in 2018’s 1st quarter. There were also a healthy 44 pending. While l luxury space above $1 million was off from last year. The million dollar range saw 21 pending contracts emerge as the quarter ended, and a very strong spike in sell thru, while the ultra-luxury segment over $2 million started slow but has gained momentum in recent weeks with 5 homes now pending for the 2nd quarter. Active inventory stood at 6-9 months in the lower luxury ranges which represent fairly balanced conditions.
Showing appointments were up across the board in comparison to the first quarter of 2018, with the mid-market price range up to 1682 showings from 1425. The ultra-luxury market also showed a strong spike corresponding to the increase in pending, with showings tripling from 30 last year to 90 over the most recent 60 days.
MOORESVILLE Q1 HOMES SOLD & SHOWINGS
LISTINGS MOORESVILLE SOLD MOORESVILLE
Denver | West Shore
While the West Shore area of Lake Norman posted flat to slightly lower closed results, the area saw a huge spike in showing activity as the quarter closed, with the million dollar range doubling compared to 2018’s 1st quarter along with a healthy increase in showings in the mid-market luxury space. This typically points to an increase in pending contracts, which should show up as we move in to he 2nd quarter of 2019.
DENVER | WEST SHORE Q1 HOMES SOLD & SHOWINGS
LISTINGS DENVER | WEST SHORE SOLD DENVER | WEST SHORE
Lake Norman Market Forecast
As we predicted at the end of 2018, increased showing demand continues to drive the Lake Norman market. Despite the slowing sell thru of the last 4th quarter last year, we continued to see active showing conditions that ran well ahead of 2017’s same period. This pointed to what remained as a very solid demand despite some economic headwinds. Fast forward to the more relaxed Federal Reserve posture to start 2019, a recovery in the equity markets, and that increased demand blossomed into actual heavy contractual activity near the end of this just completed first quarter.
Showings continue to run ahead of 2018’s first 4 months, indicative of what will likely be a very strong second quarter and early third quarter. The wild cards potentially adding some volatility the second half of the year include the ongoing EU/ Brexit soap opera and how/ if it is ultimately resolved. There are also some interesting things going on in the fixed income markets in terms of risk appetite. From a housing standpoint, the underlying conditions and demand point to a strong second quarter spilling over into the mid-summer.