I decided to analyze just the sales month-to-date for this month, January 2010, by reading each sold listing’s individual MLS listing information and remarks to figure out the actual category in which to place each sale. So far 40 homes have been reported as sold this month. I broke down these sales into four categories:
Type of Sale
- Foreclosures: There were 12 bank-owned properties that sold representing 30% of our total sales this month.
- Shortsales: 3 sales indicated in the remarks that they were short sales representing 7.5% of our total.
- Bargains/Sell below tax values: 16 properties sold below their assessed tax values, in some cased substantially below. These represent 40% of the total sales.
- Regular Sales/Sales above tax values: A total of 9 properties sold at or above the assessed tax values. It is impossible to know from the MLS data if any of these were distressed but there was no indication that they were in their remarks. These represent 22.5% of our total sales this month.
Sales by Price Range
- Up to $250,000: 17 or 42.5%
- $251,000 – $500,000: 15 or 37.5%
- $500,000+ : 8 or 20%
Lake Norman Area
- Iredell County/Mooresville: 24 or 60%
- Mecklenburg County/Cornelius % Huntersville: 6 or 15%
- Lincoln County/Denver: 8 or 20%
- Catawba County/Sherrills Ford: 2 or 5%
- This past month approximately 4 out of every 5 sales were distressed in some way. Slightly over one third were foreclosures and shortsales and another 40% sold well below their assessed tax values. There is no doubt that bargains are what are driving our Lake Norman home sales right now just as they have for quite some time.
- 42.5% of all of our January sales were $250,000 or less and 80% were $500,000 or less.
- 60% of our sales were in the greater Mooresville area in Iredell County. The second most active area was Denver. It is interesting to see how few homes sold in Cornelius, Huntersville and Sherrills Ford.
As I have written before, there are truly two different kinds of active listings in our Lake Norman area. There is the group of distressed properties that are listed well below the historic highs and then there are the majority of active listings that are priced at levels more appropriate for two years or more ago.
There is a great disparity growing between the prices of properties that have sold in specific neighborhood or community and the current active listings that are not yet distressed sales. I have found this in such neighborhoods as The Point, The Harbour, Bay Crossing. The disparity can be as much as $50 per square foot! Serious buyers know the recent low sales numbers so get frustrated when they view comparable active listings that are priced significantly higher.
The million dollar question is what is going to happen to all of our active listings that are over priced? Are they too headed for foreclosure or will the sellers simply wait out the market?