Lake Norman & Charlotte Market Values  

Moving to the Charlotte or Lake Norman Area?
	We've tried to address some of the most commonly asked questions about our market below.  Please call, email, or use the "Live Chat" feature here if you have any other questions or requests.
Here it is... The Truth about the Charlotte Housing Market

The Market is Softer than past years - but the news is NOT all bad!

CNN recently named Charlotte as a "best bet for recovery."  Naming it in the top ten major metros expected to see the largest price gains in the next few years.  Smart buyers will realize that now is the time to get off the fence and buy...especially with mortgage rates at historical lows.

According to Kiplinger's Personal Finance magazine, Charlotte is the second-best value city in America, next to Omaha, NE.  Kiplinger's rankings were based on low cost of living, strong economies, and personal amenities.  Kiplinger's reports:  "Residents benefit from wallet-friendly utility rates and low taxes.  Plus, reasonable construction costs and  stock of cheap local materials hold housing costs to just 80% of the national average."

Trends vary by community, by month, and by price point.  Recent numbers seem to suggest the market is very slowly turning in the right direction.  Most recently, we've noticed buyers recognizing that now is the time to buy move-up, higher-end, and waterfront properties while rates are so good and before prices go back up as the economy improves.

Lake Norman Waterfront:  While much of the country and some pockets of Charlotte are still wondering if their housing market has hit bottom yet,  all indications are that the niche market for Waterfront Homes on Lake Norman hit bottom in late 2009 and has been slowing trending up since then.  Statistics show that the number of Waterfront Homes sold on Lake Norman is 2009 was a mere 94 (after 280 in 2007 and 152 in 2008.)  In 2010 that number climbed back to 139.  In 2011 the total sold was 245.  Prices are also slowly creeping back up to "normal."

Overall, the greater Charlotte market has experienced phenomenal growth over the last decade or two.  Many, many people are choosing to move to this wonderful region from all parts of the country and beyond.  The rate of growth has slowed from the peak years of 2005 to 2007 but certainly not stopped.

We are most impacted by the stagnant markets in more depressed parts of the country.  Many people eyeing a move to this area have been delayed because of difficulty selling their current homes in other states.  This has certainly caused a trickle-down slowing in the market in Charlotte.  The number of buyers is down from the crazy pace of 2005 - 2007.  Homes that would have sold in under 30 days then may now take 180 days or more to sell.  BUT...overall prices here never dropped to the extent they have in other markets.  Fortunately, we never had an artificial "bubble" to burst like other parts of the country.  Properly priced homes here are still selling for typically 94% to 98% of listed price.  However, there are plenty of homes listed making this definitely a "buyers' market" in terms of the amount of home inventory available.  Some sellers are choosing to sell for less than they paid 3-5 years ago in order to compete.

There are always some home sellers that are motivated to deal for one reason or another.  Buyers who are educated and have cash or loan pre-approvals and are able to close quickly without contingencies will get the best deals.  The opportunities are tremendous for home buyers in the Charlotte area.  

Mortgage interest rates are unbelievably low!
While rates often change daily, our buyers have been routinely getting around 4.0% on 30-year fixed rate mortgages; and under 3.25% on a 5-year ARM!  Even Jumbo 30-year fixed loans are available in the 5.0% range.  Contrary to what you might hear, buyers with decent credit scores are having no problems getting mortgages.  FHA loans are still available with as little as a 3.5% down-payment -- & USDA rural area loans with 0% down for qualifying locations.  (Although the white house is proposing changes.)  We can suggest lenders that can explain all of your options and will compete for your business.

If you have been sitting on the fence in a slower housing market waiting for a "better" time to sell your current home, consider this...  It might make more sense to sell now (taking a little less than you'd like) in order to get in on the deals here that we may never see again.  You can start growing your equity sooner and faster in this popular market with a newer home and a better interest rate.

Charlotte is a year-round housing market.  With over 200 of the Fortune 500 companies having major offices in Charlotte, there are always people being transferred in and out of the area.  Buyers can always find a great selection of homes for sale.

A Market Snap Shot

How much will a house cost you?
It is hard to get a true feel for how much house you will get for your money until we actually start touring homes with you, but these examples should give you some idea.  The chart below will give you a rough idea of what an "average" home will cost you in the sampling of communities listed.

Last Updated - 1/4/12.

	Price of an "Average"(1) Home Sold in the last 6 months ending 12/31/11 Price/Sq. Feet		Average of "All Sales" (2) - last 6 months	(1) - "Average" for these purposes is defined as all single family homes sold in the zip code(s) that are not waterfront, not on the golf course, not mobile or modular.  2ba = 2 or 2 and a 1/2 baths.  3ba = 3 or 3 and 1/2 baths.  Any or no garage. (2) - "All Sales" for these purposes include all single family homes, condos, and townhomes sold through the area Multiple Listing Service.  It does not include land, commercial property, or any property not listed on the MLS. Disclaimer:  These are very basic statistics for only a handful of the possible areas you might choose to live -- meant only to give you a very rough idea of the market here.  Obviously, individual home prices vary greatly based on the value of the lot, desirability of the neighborhood & schools, the quality of upgrades, etc.  "Averages" can also be skewed by a small sample size
Area	3bd/2ba	4bd/3ba	All sizes, types, locations Homes, Condos, & Townhomes
Huntersville  (28078)	$177,091/1885	$285,315/2979	$246,836
Cornelius  (28031)	$193,593/1920	$358,696/3158	$324,583
Davidson (28036)	$226,201/1919	$453,637/3295	$319,309
Mooresville (28115 & 28117)	$177,063/1838	$372,100/3270	$315,378
Denver (28037)	$181,195/1836	$340,862/3313	$301,171
Concord & Harrisburg (28027,28025 & 28075)	$136,856/1734	$306,230/3270	$188,798
Charlotte - North (28269 & 28262)	$107,056/1725	$206,047/2819	$130,269
Charlotte - Myers Park & nearby (28209 & 28211)	$232,814/1797	$471,692/2890	$334,011
Charlotte - South (28226, 28270 & 28277)	$185100/1865	$401,555/3322	$298,574
Mint Hill & Indian Trail (28227 & 28079)	$110,042/1602	$197,283/2854	$140,263
Matthews & Weddington (28104 & 28105)	$158,094/1865	$331,404/3300	$266,593

We'll find you the best deal...it's not always a foreclosure

No matter what you are looking for we can help.  Your first home?  Your dream home? Down-sizing?  Bare land to build on?  Investment or rental property?  No matter what your budget, we will find you the best deals available anywhere in the geater Charlotte or Lake Norman market.  Use the guide above to see if your expectations are in line with the market.  For instance, if you want a 4bd/3ba home for sale in Huntersville but you can only afford to spend $250,000 (12.4% below the market average), we will show you all of your options (and there will be plenty) but you may need to prioritize your wish-list.  Expect there to be trade-offs in every budget.  Larger lots, for instance, can greatly increase the cost of a home in this market where land is at a premium. 

When we meet to start seeing homes, we will provide you with much more detailed market information specific to your home preferences.  We will work with you to ensure you have all the information you need to make an informed buying decision and an investment that will appreciate.  No matter how long it takes, we will find the house that is "meant-to-be" yours! 

How is the Charlotte Area Different than where You are Now?  

Depending on where you are moving from, you may or may not find the housing market here different from what you are accustomed to.  As your Buyer's Agents, we will guide you through all the options available to you.

• Few basements.  "Up North" because of the frost line you need to dig deep for footings so you might as well dig a bit more and have a basement.  We have no frost line to speak of.  Because of the heavy clay soil here and the effort & expense to properly waterproof basements, you will find that only a small percentage of homes have them (about 13%.)  Where they exist, they are usually walk-out (or, daylight) basements meant to be finished to the same standards as the rest of the house.  Basement square footage is not inexpensive here like it is in many other states.  It is usually cheaper & more desirable to add extra above-ground space.
• Small lots.  Because of the rapid growth and land-use concerns, you will find that most new development is on lots of a quarter acre or less.  Buyers looking for "acreage" are going to find fewer choices, mostly older homes, and usually farther out from the employment centers.  Lots of a half acre or more are often referred to as "large." 
• Subdivisions.  A huge percentage of newer construction is going to be in the form of subdivisions.  The trend is for large developments with small lots and more emphasis on community common areas such as green spaces, neighborhood pools, tennis courts, and other shared amenities.  Most newer development will have home owners' associations (HOAs) that over-see maintenance of common areas and enforce the recorded covenants and restrictions.  These restrictions are not to be feared.  They are, for the most part, logical and protect home values.
• All New.  Because this area has seen explosive growth in just the last 10 - 15 years, the majority of homes for sale are less than 15 years old -- especially in the Lake Norman area and other popular suburbs surrounding the city.  If you are looking for an older home "with character" like is found in older cities, you will find a very limited (and, therefore, expensive) selection in this area.  There are a few popular pockets of gorgeous older homes in the city of Charlotte, but their limited numbers make them priced accordingly.  You might find it odd, but you will hear people refer to homes built in the early 90's as "older."
• No Open Houses. If you are coming from the Northeast or parts of the Midwest, you are accustomed to spending your weekends going to open houses if you are house-hunting.  Or, maybe you call the seller's agent to meet you & show you a house.  It doesn't work that way in this market.  Very, very few open houses are held.  When they are, their main purpose is for buyers' agents to meet people who might need their services.  When you are ready to shop for a home in this market, you select a professional Buyer's Agent to work exclusively with.  That agent can show you any home available for sale and will schedule appointments through centralized showing services.  The seller's agent normally does not attend and the sellers are expected to be out of the house for all appointments so that you & your Buyers' Agent can look around and discuss the house in privacy. Working with an organized Buyers' Agent, it is not unusual to see 20 homes in a single day.
   

Thinking about Lake Norman Waterfront? 

Waterfront homes sell for a premium in all markets and the greater Charlotte market is no exception.  However, there are currently more waterfront homes available than there are buyers for in this soft market.  We are seeing some phenomenal deals on waterfront property lately; particularly nicer homes in the $1M and up price range.  No - this does not mean you can get a Million-dollar home for $500,000.  It does mean that, with patience & research, you might be able to get a luxury home for 10-20% less than it would have sold for 5 years ago.  We monitor this waterfront segment very closely.  Contact us today if you'd like to be notified when the best waterfront deals hit the market.

For comparison to the non-waterfront homes above, the "typical" waterfront home (excluding mobiles) of any age/size with a pier or dock sold in the past 6 months ending 12/31/11 was:

Lake Norman: 3bd/3.5ba home, 3728 square feet for $766,302  119 properties sold; range $125,000 to $3,200,000.  Bare lot -average: $264,137***  29 sold; range $40,000 to $1,325,000.

Lake Wylie: 3bd/3ba home, 3165 square feet for $510,787.  31 properties sold; range $107,000 to $985,000.  Bare lot - average: $190,840***  20 sold; range $29,900 to $425,000.

***Note: Just because a home/lot has water frontage does not mean it will be allowed to have a pier, dock, or boat slip.  This is sometimes not allowed because of environmental conditions or crowding.  The lower priced lots/homes may not have any lake access, just a view.   Sometimes not even a view.

See Waterfront Homes and Lots.

Lake Norman or Lake Wylie?

Clients often ask us about the differences between the lakes in this area.  Lake Norman is by far the largest, deepest, and cleanest of the all the lakes on the Catawba River chain.  With over 32,000 acres and 520 miles of shoreline it has the widest variety of recereational opportunites of all the lakes.  For additional information on Lake Norman and the other lakes: 

Duke Energy Site- Lakes in the Chain, Maps, and Access Points