It was exactly one year ago that I started creating these Lake Norman Real Estate sale analysis and market reports for this blog. (See Lake Norman Real Estate Sales Trends: 2nd Quarter 2008). For the first time, I am now able to compare the numbers for the active, contingent, conditional and pending sales as well as the statistics about the single family residential properties sold year to year:
- Active listings are up a whopping 38% versus one year ago
- The number of listings sold dropped 42% versus the same period in 2007
- The average sales price dropped 9% versus 2007
- The months of supply of listings based upon our current sales and inventory is 19.9 months. One year ago we had an 8.4 month supply on hand which is less than half of this year. Keep in mind that a balanced market would have about 6-8 months of inventory.
2nd Quarter Lake Norman Home Sales by Price Range:
* All statistics are from the Charlotte Regional Mulitple Listing Service
This report is most useful for buyers and sellers. It enables you to focus on your own price range and size up the competition, the strengths and weaknesses and trends that might help positon you best for your purchase or sale.
For example, let’s say you are planning to buy a home in the $600,000 – $800,000 price range. Clearly the $700,000 – $799,999 price range is significantly overstocked with inventory: 121 active listings and only 9 sales in the past three months. You might be able to negotiate a better price with sellers in this price range.
On the flip side, if you are a seller pricing your home and your Realtor thinks it is in the $675,000 – $725,000 range it would be far better to price it UNDER $700,000 in hopes of being one of the 22 sales versus only 9 if you price it over $700,000.
This past quarter over 70% of all Lake Norman home sales were under $500,000. While we had some nice very high-end sales this past quarter, (hence the very high average sale for conditional sales) for the most part the luxury home market is still struggling.
There is no doubt that we are experiencing a decline in the number of home sales in the greater Lake Norman area and also a decline in the average home price. At this point, based upon all of the global and national economic dynamics it is unlikely that we will see relief from this real estate slowdown in 2008.
Just so that you all don’t think it is impossible, in my next article I am going to outline how I listed and sold a home in Lake Norman in less than 3 weeks. It can be done!!!