Low inventory and active showing conditions are combining to create pretty solid buying conditions for February so far in 2012. In the last 4 weeks, luxury contracts on homes over 500,000 in Davidson and the Lake Norman MLS areas have jumped from the low 50’s to 79 units under contract, well ahead of this time last year. There are now 19 homes over 1 million under contract in the area as contractual activity moves at a pace well ahead of last year at this time.
As we predicted in our January newsletter, these conditions have also allowed the market to absorb new distressed inventory at a pace that is keeping it well below the highs of two years ago. Distressed luxury inventory declined from 46 units to 39 over the past 4 weeks, a small number given there are almost 500 homes for sale in the luxury segment at Lake Norman. Inventory in communities like River Run, The Peninsula, and The Point remains low, rewarding sellers who stayed on the market this winter as many landed contracts.
The election year political climate appears to be one of compromise in order to win re-election, and last year’s political battles have moved off the main stage, helping to restore consumer confidence. We continue to anticipate a solid year in terms of selling activity.