Look for above-average home price increases to continue this year and next year.
Pat Riley, the president of Allen Tate, says inventory shortages are not going away anytime soon. The historic recession that began in earnest in 2008 decimated the home construction industry with construction workers and contractors disappearing, some never to return.
“I don’t see shortages going away anytime soon because builders have a long way to go to get back up to full speed. Also, boomers are dragging their feet when it comes to downsizing,” Riley says. Boomers, some of them still recouping losses from the recession before they retire, are remodeling and staying put. Of course, shortages cause above-average appreciation because of supply and demand.
New home construction means year-over-year price gains of around 4 percent for existing homes are the norm in Charlotte, while Chicago and New York have seen declines of 2 percent and 3 percent, respectively. On the flip side are markets like Portland, Seattle and Denver, where price gains are in the double digits this year over last year, according to the S&P/Case-Shiller national home price index
“Once we get inventory realigned, annual price apprecation will fall back into the 3 percent to 4 percent range,” Riley said.
Regarding Lake Norman in particular, he said congestion on I-77 is less of a factor when it comes to real estate appreciation than it might be along a different interstate.
“I-77 is being addressed and light rail will follow at some point. Lake Norman has always been attractive for those who do not need to work downtown and can work at home, or are retired, and need access to a major airport,” he said, explaining that future generations will judge us on how we managed regional planning.
For luxury homes the critical Days on Market is improving, reflecting improving inventories. In the super-luxury market, though, it’s still a tough sell.
For Lake Norman homes from $1 million and $ 2 million in the Lake Norman area, DOM has dropped from 97 days to 69 days over the past year, a decline of near 29 percent, according to Abigail Jennings, president of Lake Norman Realty.
During the past 12 months, the same number of homes closed, 93 for each year, Jennings said.
For homes priced $2 million to $3 million, DOM increased more than 48 percent to 172 days compared to 116 days in the prior 12 months.
“Closings are down in this range too, with 13 homes closing in the past 12 months, compared to 16 in the prior 12 months,” Jennings said.
But for homes over $3 million, DOM fell to 133 days in the past 12 months, vs. 182 days during the preceding 12 months, a 27 percent decline.
Closings in super-luxury range went to three in past 12 months compared to four in the prior 12 months.
A 6,600 square foot home at 6813 Highgrove Place in Concord has sold for $857,500 after being listed three months ago for $895,000. The five-bedroom French Provincial home sits on two acres in a gated neighborhood off Trinity Church Road and has a pool.. The house, built in 2000, has a tax value of $769,590. Inside features include a wet bar, billiards room and a workshop. The house is cool: It has four HVAC systems. The listing agent was Monica Besecker with Keller Williams in Mooresville. Sandra Thomas with Roby Realty brought the buyers to the closing table.
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A 5,673-square-foot house at 7200 Three Sisters Lane has sold for $927,000 after being listed at $937,900 a week earlier. The house, which sits on 1.6 acres in the Jacob’s Ridge subdivision, has five bedrooms and four baths as well as two half-baths. The first-floor master suite includes marble and multiple shower-heads in the walk-in shower. There is a large screened porch and patio off the living room. The tax value of the home is $884,860. The listing agent was Aaron Davis of Cottingham Chalk. The selling agent was Teresa Hoefl of Berkshire Hathaway.
A 5,500 square foot lakefront home has sold for $1.215 million after being listed at $1.225 million less than two weeks before. The house, which sits on nearly two acres, has a second living quarters on the lake level, complete with a full kitchen. The four bedroom, five bath house has a tax value of $898,000. Maria Jacobs of Lake Norman Realty represented the sellers, while Jacqueline Martinez represented the buyers.
The definitive lake house has sold at the end of Mollypop Lane for $1.4 million, having been listed at $1.49 million by Dixie Dean with Allen Tate. Sited near the top of a point lot, the 2,700-square foot, three-level coastal modern contemporary has 424 feet of waterfront and commanding views of the lake. The house, which has a tax value of $1.2 million, was on the market for two months. Dean also represented the buyers.
A house at 18019 Shearer Road in River Run has sold for $745,000 after being on the market for four months. Listed at $760,000 by Lynne Shapiro of Lake Norman Realty, the house has four bedrooms and four baths in 3,769 square feet of space. Newly built, the house has a kitchenette in the bonus room as well as as a master and guest room on the main floor. Bene’t McSwain-Cash represented the buyers. Tax value is $694,000