LAKE NORMAN RESIDENTIAL REAL ESTATE HOT SHEET
October 24, 2008
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My sixth bi-monthly Lake Norman Friday Hot Sheet is here!
Above is a chart with our Friday’s “hot sheet” numbers from the Charlotte Multiple Listing Services for all single family homes in Lake Norman (area 13). For comparison, I have provided numbers from the past 5 months. Here are some highlights:
- Our pending and number of closed sales were both down to all time lows. Pending home sales dropped by -30% compared to 4 weeks ago and closed sales dropped -3%.
- New listings were up slightly from the last report. I was truly hoping that our overall inventory would be declining at a faster rate. We need to see the number of homes for sale in Lake Norman drop substantially before we can expect to see a turn around in our real estate market!
- The number of Lake Norman listings coming back-on-the-market were back up to our summer figures. This is troubling as it indicates that sales aren’t “sticking”. When we have almost as many sales canceled as we have going under contract it clearly reflects the lack of confidence and possible difficulty with loans on the part of our Lake Norman buyers.
- The number of price changes (reductions) were back up. It is interesting to see that our Lake Norman sellers are keeping their homes on the market despite the current economic turmoil. I personally think that this may be an indication that our sellers are serious about selling their homes and not just “testing” the market. Very few seem to be opting out. Motivated sellers should mean that there will be better opportunities for buyers.
- Pending home sales dropped -30% as I stated above. This is truly the most alarming number in this two week period as this is an indication of how many Lake Norman homes are successfully through their inspection and loan conditions and are just waiting to close. Many economists use the pending sales as a barometer for overall sales trends.
- Solds (Lake Norman home sales contracts that closed in the past two weeks) were almost identical to a month ago. We clearly did not get an after school opens bump as we do most years.
- Contingent and Conditional Sales remain very low. These numbers are Lake Norman home sales just put under contract which would seem to indicated that our overall Lake Norman real estate market is still be trending downward.
I must admit I was feeling a bit more upbeat about the Lake Norman Real Estate market last month. We need to get our inventory of homes for sale down and I would like to see some stronger sales numbers before we head in to the holidays when real estate sales throughout the country traditionally slow down.
Of course, much of this is dependent on consumer confidence and a stabilization of our financial markets. I personally have quite a few, well qualified buyers planning to move to Lake Norman. Short term we will continue to struggle but there is no doubt that there are many buyers looking forward to moving to Lake Norman in the future. Hang in there!
Have a great weekend!