Hot Properties

Market over $2 million is as hot as it was back in 2006-07

Market over $2 million is as hot as it was back in 2006-07

431 Bay Harbour Rd, Mooresville for $1.175 million

Not that everybody can participate, but it looks like the market for homes priced over $2 million is about as hot as it was before the Great Recession.

Last year there were 21 deals valued at $2 million-plus in Lake Norman, compared to only nine such big deals in 2012, according to Reed Jackson, managing partner at Ivester Jackson Distinctive Properties in Cornelius.

“There was basically a doubling of the sell-through at this price point in the last two years,” he said. In The Point in Mooresville, there were seven ultra-luxury transactions last year, compared to two the year before.

On an annualized basis, the sell-through rate is about double what it was before the real estate market started to revive. Jackson said inventory stands at around a year, not bad in this price range, where buyers are few, far between and picky.

“We’re actually back to the way conditions where in 2006 and 2007 at the peak,” Jackson said. Of course those were the glory days of real estate, when the words over-supply, inflated, real estate bubble and over-built were not part of the everyday lexicon.

“During the bottom of the recession so many people didn’t put their houses on the market,” Jackson said, explaining the uptick in listings at a lot of price points. Demand, especially in the $500,000 to $1 million price point, is strong.

There are about 45 homes on the market now over $2 million, Jackson said, explaining that most buyers in the ultra-luxury price range are not local.

“Most are from out of state,” he said. Among buyers at $3 million to $4 million, 75 percent are out of state or out of the country,” Jackson said. In the $1 million to $2 million range, only 50 percent of the buyers are from out of state.

A major Chinese developer, complete with an entourage that includes interpreters, is shopping for a home on Lake Norman in the $3 million range, Jackson said.

A deal on Woods Hole Court in The Point in the $3 million range has a Florida party on the buyer’s side. On Westward Reach in The Peninsula, in the $2.5 million range, the buyer is from New Jersey.

Market over $2 million is as hot as it was back in 2006-07

352 Tuscarora Trail, Mooresville for $625,000

“At least 50 percent of these deals are all cash,” Jackson said, noting that the buyer demographic at this level is highly entrepreneurial, an owner class that can live virtually anywhere. In many cases, these buyers are looking at second and third homes.

On the agent side of the equation, there are 19 different agents with buyers looking in the $2 million-plus range.

Newer is easier to sell than older. Of the $2 million homes sold last year in Cornelius, nine were built in 2005 or later. The average days on market, Jackson said, was about 250 days. “If you had a house built in 2005 or newer it would sell in six months or less.”

The market between $500,000 and $1 million is booming. Robbins Park, being developed by Classica Homes in Cornelius, is particularly hot. “That development is steaming,” Jackson said. New homes in the $500,000 to $750,000 range are selling in 30 days.

Older homes in all the luxury price ranges are taking longer to sell. “Newer sells much faster than the average, but updated will sell similar to new construction.”

Charlotte vs. national trends

The S&P Dow Jones Indices Case-Shiller Home Price Indices show that home prices continued their rise across the country over the last 12 months. But monthly data reveal slowing increases.

The National index declined slightly in January. But among only nine cities that reported increases, Charlotte, Miami and San Diego led the pack with a nearly 1 percent increase. Of course, submarkets like Lake Norman fare better.

San Francisco reported the largest decrease of all 20 cities, with a month- over-month decrease of -0.9 percent. Seattle and Washington D.C. reported decreases of -0.5 percent.

Unusually cold and wet weather may have weakened activity in some cities.

“The combination of low interest rates and strong consumer confidence based on solid job growth, cheap oil and low inflation continue to support further increases in home prices,” said David M. Blitzer, of Dow Jones.

Despite price gains last year on a national level, the housing market could face some difficulty, Blitzer said.

“Home prices are rising roughly twice as fast as wages, putting pressure on potential homebuyers and heightening the risk that any uptick in interest rates could be a major setback. Moreover, the new home sector is weak; residential construction is still below its pre-crisis peak. Any time before 2008 that housing starts were as low as the current rate of one million, the economy was in a recession,” he said.

In Mooresville

A recently renovated lakefront house at 431 Bay Harbour Road in the The Harbor has sold for $1.175 million after being listed at $1.275 million by Doris Nash and Jessica Simpson of Ivester Jackson Properties.  The 5,545 square foot house has an all new kitchen with a glass island, a stone fireplace, a library and pocket doors leading to a separate office on the main floor.  The house  has a tax value of $1.02 million.

On the market two months, J.C. Brady of Allen Tate represented the buyers.

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A short sale at 352 Tuscarora Trail off Brawley School Road has sold for $625,000 after being listed at $643,000 by Tammi Juengst and Bruce Juengst at Keller Williams in Mooresville. The 5,000 square foot house, which was built in 2006, has waterviews, a pool and stone tile floors on the main floor. Crystal Fry of Lake Norman Realty represented the buyers. The tax value on this property was $650,000.

Hot Properties

Hot Properties is all about the deal. If you’re an agent with a high-end, closed deal, usually $750,000 and above, let us know. Email the editor, Dave Yochum, at [email protected] or call 704-895-1335.


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