168 BROADSOUND IN MOORESVILLE: 265 DOM

The 2020 outlook for home prices is strong—another way of saying it looks like the seller’s market will continue next year, and first-time buyers will go farther to find affordable properties.

“Supply channels show little to no relief in sight,” says Pat Riley, CEO of Allen Tate Realtors.

Builders are building new homes at a rate well below historic averages. “Meanwhile, Baby Boomers are downsizing at age 74 instead of early 60’s – and we need their inventory,” Riley says.

PAT RILEY

In the $175,000 to $400,000 price range, there’s very little product. Appreciation rates for those homes is way above historic averages.

“What is hurting inventory more than anything is America’s homes are now an average of 43 years old,” Riley said.

The luxury marketplace—a major factor in Lake Norman— attracts about 6 percent to 8 percent of the buying public.

Riley says the local market is healthy, even though we are not a luxury destination.

Allen Tate assembled the 20 highest priced homes on the market right now in Mooresville, Davidson, Cornelius and Denver.

The average Days on Market for all 20 homes was 203 days as of late October.

Nine are in Cornelius, although one of them is a lakefront lot on Belle Isle with plans for a large home. Seven are in Mooresville, three are in Davidson and one is in Denver.

ANITA SABATES

Buyers in the $2 million-plus range often pay cash and many are from out of the market, says Anita Sabates, with Allen Tate in Cornelius.

Self-made wealth and corporate executives relocating here help drive the high-end. 

They can be very persnickety on their purchases.

“Condition and price are everything; good homes will sell at any price point,” says Riley.

“Where the challenge lies is that most of our lake and golf course luxury properties were built 20 to 30 years ago, and most of these homes have not been kept current,” he says.