Jan. 17. By Dave Yochum. Despite two overseas wars, rising mortgage rates and economic uncertainties like inflation, luxury home prices have remained strong with multimillion-dollar cash transactions more and more common.

High construction costs, labor shortages and unprecedented in-migration are contributing to a shortage of listings above $1 million.

Sticker shock?

Average prices for all price levels in Cornelius increased from $735,670 to $790,264 during 2023, according to Matt Sarver, broker at the Sarver Group at Keller Williams. That’s a 7.4 percent increase, based on information from Canopy Realtor Association which covers the Charlotte region.

Average prices for homes $1 million and above increased from $2,022,691 in November of 2022 to $2,201,913 in November of 2023—an 8.9 percent increase.

Matt Sarver

Months of supply for homes over $1 million is at 2.8 months. Pre-Covid in January of 2020 it was 6.8 months supply, “so this is a great time to sell,” Sarver said.

Over at Premier Sotheby’s International Realty, Cornelius broker Marzia Mazzotti said luxury buyers seem unfazed by interest rates.

No intense bidding wars

And despite the challenges posed by a scarcity of inventory and a steady rise in home values, there have been neither intense bidding wars nor seller concessions.

“This lack of competition and concessions enhances the appeal of the market to potential buyers,” Mazzotti said.

Marzia Mazzotti

It stands to reason a rising tide floats all boats, with demand at the high end shoring up prices at the other end and points in between. That said, don’t look for the soaring prices and bidding wars seen during the COVID-19 years.

Champ Claris, managing broker at Sotheby’s, said he is “cautiously optimistic for improvements” in all price points next year with modest rate decreases and—hopefully—some additional inventory.

Lake Norman

Anita Sabates, a luxury broker with Allen Tate, says there’s been a 30-year upward trajectory for the Lake Norman luxury market due, in part, to the “insatiable appetite for the quality of life” the Lake Norman region offers.”

Anita Sabates

“The Charlotte area has taken its rightful place as a destination market and the Lake Norman region is arguably the crown jewel in that market,” she said.

The luxury real estate buyer is seeking the “experience” that comes with their purchase, she said.

“There is no doubt that Lake Norman and its amenities offer an unparalleled experience,” Sabates said.