MARKET REPORT

                 

                                                                      SPRING 2017

                                                                       

 

Hello Real Estate Fans !

 

In my 2016 Year End Report I noted an increase in activity and a generally positive vibe for Denver and the Lake Norman area. That trend continues and has even accelerated so far in 2017, as the market continues to perform well. It is not unusual these days to receive multiple offers on reasonably priced listings, or to have listings sell within days or weeks of being put on the market. That being said, generally speaking prices are not rising as quickly as one might expect. There are a few reasons for that. One is that the market is pretty balanced in terms of the number of buyers out there and the number of listings. Secondly, there is much less speculation that there was in the heydays of 2005-2007. And thirdly there are a lot of new subdivisions with very competitive prices being offered.

 

Eventually though, inventory will be absorbed, and if the increase in population continues, that impetus cannot help but push prices higher. I know realtors have a reputation for always insisting that “now is a great time to buy”, but I do genuinely believe that this year and next provide a window of opportunity before prices escalate. Better to buy now than look back 5 years from now and regret that you’ve missed the boat !

 

Relocation

 

I’ve noticed that several of my clients are relocating to North Carolina from other states and countries. North Carolina continues to be a popular destination for inter-state migration. Each year, Americans pick up and move to new state, largely due to getting a new job or being transferred to a new office location. According to a recent United Van Lines study, in 2016 North Carolina received 81,000 net migrants, which was the 5th largest inflow of people after Florida, Texas, Washington and Arizona. Besides work, people were moving for retirement, family, cost of living and climate reasons. Demographics are also playing an increasingly large role in such decisions, as the age of migrants continues to increase each year. North Carolina’s 65 and older population is projected to surpass 2 million by 2024.

 

Closing Issues / Delays

 

Some other issues are affecting our market place in general. Over the last few years the time it takes to get a deal closed has increased. What used to take a couple of weeks or a month, now often takes several months. Sometimes it is the banks doing the best they can to comply with an increased regulatory burden. But in some cases the fault lies with the buyers and sellers themselves, who get hung up on a position and refuse to compromise. Another factor is that we now have deals in which we work on repair punch lists for months just to get through the due diligence phase.

 

Market Statistics

 

Below are the latest statistics for Jan – May 2017 for the Denver area, and for Lake Norman waterfront homes, compared to the same period in 2016:

 

DENVER (zip code 28037)


Denver property sales (homes, condos, land):

 

·       All Sales – up 59% from 200 to 318

·       Sale Prices – up 8% from $312,956 – $339,017

·       Pending Sales – up 44% from 569 to 701

·       Days on Market – down 28.8% from 135 to 96 days

 

Denver single family home sales:

 

·       Sales – up 67% from 159 to 267

·       Sale Prices – up 2% from $368,583 – $376,425

·       Pending Sales – up 49% from 226 to 337

·       Days on Market – down 22% from 98 to 76 days

 

LAKE NORMAN WATERFRONT PROPERTIES


Lake Norman waterfront single family homes:

 

·       Sales – up 7% from 128 to 137

·       Sale Prices – up 8.5% from $821,831 – 891,363

·       Pending Sales – up 13.6% from 177 to 201

·       Days on Market – down 18.5% from 87 to 71 days

 

Prices are up 8.5% compared with a modest increase of 2.1% in all of 2016. Judging by the surging number of homes selling for $500,000-$1m and $1m+ on the lake, it seems likely that the average price of lake front property will continue to rise.

 

COMMUNITY

 

Children’s Miracle Network

 

RE/MAX Integrity participates in the Children’s Miracle Network program. This program was set up in 1992 by the founder of RE/MAX for its brokers to partner with local children’s hospitals and provide donations. The primary fundraising  effort is by RE/MAX associates who contribute a portion of their commission to a Children’s Miracle Network hospital with each closed transaction.  To date over $140,000,000 has been donated. Those of you interested in buying or selling a home, and helping their local CMN hospital in the process, please speak to Scott Elliott for further details.

 

YMCA

 

RE/MAX Integrity is partnering with Sally’s YMCA for their “Togetherness” Initiative. This involves volunteering for four public service projects per year in our Lincoln community, and so far Sally’s is leading the way as the first YMCA to participate in the Charlotte region.  Examples of such projects include organizing activities for youth / teens, helping the elderly or assisting vulnerable persons. For further details see www.ymca.net\togetherhood, or speak with a RE/MAX Integrity associate.

 

HABITAT FOR HUMANITY

 

Earlier in May the associates at RE/MAX Integrity participated in a Habitat for Humanity house weekend build in east Lincolnton. It was a perfect time for it as the weather was cool and the rains had not come as yet. Wonderful group of people are involved and no need for building skills as they are taught on site ! If you would like to get involved, see www.habitatlcnc.org, or speak with a RE/MAX Integrity associate.

 

Have a great Memorial Day weekend all !

 



                                                                              MARKET REPORT - YEAR END 2016

 

Hello Real Estate Fans !

 

In my previous report I mentioned an increase in activity and a generally positive vibe for Denver and the Lake Norman area. Since that time we have had an election and President Elect Trump is due to be sworn in shortly. Notwithstanding what many see as his personality shortcomings, the financial markets have reacted very positively to a Trump presidency as he is viewed as having a business friendly platform. Trump’s promises to restructure the tax code and lower taxes, revise or repeal the Dodd Frank law and generally reduce government red tape, would all benefit the real estate market in North Carolina. Of course it remains to be seen if and when those proposals come to pass

 

General Outlook

 

2016 was definitely a good year for real estate in the Lake Norman area. After about 7 years of recession interest began to increase and people began to buy again. Initially some transactions were held up as mortgages were difficult to get due to low appraisals based on lower historical sales date. As more properties sold and prices firmed, that problem subsided. Thankfully we have now had at least a full year of rising prices in most market sectors, so appraisals now reflect the market strength we have seen. Overall the sales figures for 2016 for all properties (homes, condos, land) in the Lake Norman area were up a modest 2.4% and prices were up 8.6% However, as detailed below properties in particular market segments are selling exceptionally well. There is plenty of activity and a feeling of optimism and prosperity in the air. Supply of properties in most sectors is lower, and marketing time is down, which means more sales activity and rising prices. Pending sales numbers continue to be very strong which bodes well for 2017. Overall we are moving in the right direction.  

 

Below is a summary of 2016 property sales for the Denver area, and for Lake Norman waterfront homes.

 

DENVER (zip code 28037)


2016 Denver property sales (homes, condos, land) compared to 2015 are as follows:

 

·       All Sales – up 14.9% from 588 to 686

·       Sale Prices – up 25% from $268,000 – $327,500

·       Pending Sales – up 17.6% from 569 to 701

·       Days on Market – down 38.5% from 48 to 32 days

 

DENVER (zip code 28037)


2016 Denver single family home sales compared to 2015 are as follows:

 

·       Sales – up 25.2% from 462 to 576

·       Sale Prices – up 14.8% from $313,750 – $356,789

·       Pending Sales – up 28.2% from 447 to 591

·       Days on Market – down 35% from 40 to 26 days

 

LAKE NORMAN WATERFRONT PROPERTIES


2016 sales of Lake Norman waterfront single family homes compared to 2015 are as follows:

 

·       Sales – up 20.5% from 377 to 447

·       Sale Prices – up 2.1% from $710,000 – 725,000

·       Pending Sales – up 16.5 from 377 to 458

·       Days on Market – down 26.5% from 81 to 61 days

 

 

Clearly there continues to be increased buyer activity on the lake. While overall prices increased by a modest 2.1%, in the $500,000-$1m category, prices rose by 38%. Updated and well maintained properties are selling quickly.

 

Developments

 

Cambridge Developments / corner of Business 16 and 73 – Clearing work on this much anticipated development continues. Publix supermarket has applied for a building permit, which is close to being approved. Completion is expected within 1 year. Phase 2 of the project, a 55,000 sq.ft. office park with associated retail, bank and restaurants, has received preliminary approval. A third phase is also in the works, although it is too soon to know exactly what uses will be included in this last phase.

 

Campground Road – You may have noticed some clearing and infrastructure activity on this residential site near the Rock Springs camp area. 55 homes are being planned with a further 130 homes in the second phase. Given the plans that have been approved and others that are currently being considered, , this is going to be a hot area of Denver for the next 2-3 years.

 

Riverwalk Apartments (off Business 16 near 73)– there are 144 existing apartments on this site. A second phase of 144 new units is planned. A new access road to hwy 73 has been approved to service this new phase.

 

Villages at Sherrills Ford (150 and Slanting Bridge Road) – DR Horton is the developer of the “Villages” mixed use scheme which is to include retail shops, a Publix supermarket, entertainment and leisure facilities. The preliminary scheme was approved some time ago and Publix have submitted plans for approval. It would be great to see this project move forward quickly as obviously it would provide a huge boost for the area. The residential component, known as the“Bridgewater”, comprises 54 acres and will include 165 homes. A model home is already built and pre-sales are underway. This is a prudent way to develop a project of this scale by having the residential built first to create instant “demand” for the facilities to be built later.

 

Blackthorne Town homes – a rezoning has been approved for 14 acres of land just north of the Lake Norman marina. This project will comprise 76 townhomes.

 

Lastly, I would like to thank Randy Hawkins and of the Lincoln County Planning Dept. and Chris Timberlake of the Catawba Planning Dept. Randy and Chris are the unsung heroes working diligently behind the scenes to ensure the planning process works the way it should and keep residents informed. They are an invaluable source of information as to what developments are happening in our community.

 

 

COMMUNITY

 

Children’s Miracle Network

 

RE/MAX Integrity participates in the Children’s Miracle Network program. This program was set up in 1992 by the founder of RE/MAX for its brokers to partner with local children’s hospitals and provide donations. The primary fundraising  effort is by RE/MAX associates who contribute a portion of their commission to a Children’s Miracle Network hospital with each closed transaction.  To date over $140,000,000 has been donated. Those of you interested in buying or selling a home, and helping their local CMN hospital in the process, please speak to Scott Elliott for further details.

 

YMCA

 

RE/MAX Integrity is partnering with Sally’s YMCA for their “Togetherness” Initiative. This involves volunteering for four public service projects per year in our Lincoln community, and so far Sally’s is leading the way as the first YMCA to participate in the Charlotte region.  Examples of such projects include organizing activities for youth / teens, helping the elderly or assisting vulnerable persons. For further details see www.ymca.net\togetherhood, or speak with a RE/MAX Integrity associate.






MARKET REPORT – LAKE NORMAN


September 2016


Hello Real Estate Fans !

 

Below is my interim report regarding a specific segment of our local market - homes on Lake Norman - and a brief update on significant residential and commercial development in Denver and surrounding areas. 

 

I have compared the 2016 year to date statistics for existing waterfront homes on Lake Norman with the same period in 2015. The results are as follows:

 

·  Sales of homes under $500,000 have increased a whopping 124%

·  Sales of homes between $500,000 and $1m have increased 17%

·  Sales of homes over $1m have increased 4%

 

·  Under contract homes under $500,000 have increased 21%

·  Under contract homes between $500,000 and $1m have increased 17%

·  Under contract homes over $1m have increased by 5%

 

Clearly there continues to be increased buyer activity on the lake. Updated and well maintained properties are selling quickly. Most sell within 5% of the asking price.  While presently there is a balanced market between buyers and sellers, if buying demand continues to grow at current levels we will undoubtedly start to see price increases in the next 12 months for homes under $1m. 

 

Developments

 

There is plenty happening in Denver these days. Chic Filet on Hwy 73 near the Wal-Mart is having their grand opening at the end of September. Although the construction start date has not been finalized, Cambridge Properties has announced they will be building a new 50,000 sq.ft. supermarket for Publix at the junction of Business 16 and hwy 73. This 15 acre development will also include a restaurant, a bank and smaller retail stores. 

 

The 200 acre mixed use development known as the "Villages at Sherrills Ford" appears to be moving along with plenty of activity at the site. Trilogy continues to roll out their subdivision near East Lincoln High School with pre-sales proceeding at a brisk pace. 

 

Other developments in the pipeline include a 64 acre residential project along Campground Road and a mixed use project, the "Rivercross", on 116 acres near Triangle Road. 

 

While this growth is welcome news for the Denver treasury, one wonders what the traffic will be like once these projects are completed. Current residents have legitimate concerns about the effect on their quality of life. Hopefully the powers that be have thought through the effect on Denver's current infrastructure and environment. 

 

If you have any questions about current market trends or about your particular area or home, please contact me. 

 

Scott Elliott
Scott Elliott
Owner