Lake Norman Real Estate Market Reports

Lake Norman Real Estate Trends: 2nd Quarter 2007

Looking back at the past 6 months there is no doubt in my mind that the Lake Norman real estate market began to weaken early in March. Like Charlotte, our Lake Norman market is not volatile like other areas in the country which experience more dramatic ups and downs. However, because Lake Norman is a destination for so many relocating from places like Florida, California and the North East we have finally been impacted by their market declines. Buyers are taking losses on the sales of their homes in other areas so are not able to buy as high or even as quickly as they had originally hoped. Plus, having taken a hit in their home markets they are more cautious about what they offer here. The Charlotte Multiple Listing service showed a decline of Residential Closings, Average Residential Closing Prices and Residential Contracts Reported from March to April. And, throughout the country sales continue to slid while inventory grows.

Lake Norman Second Quarter Statistics Summary*

  • Active Listings = 1300 @ an average list price of $662,382

  • Contingent Sales = 23 @ an average list price of $585.160

  • Conditional Sales = 42 @ an average list price of $608,000

  • Pending Sales = 170 @ an average list price of $487,922

  • Sold = 463 @ an average list price of $516,052 and average sales price of $501,063

The average sales price was 97.1% of the list price and the average days a listing was on the market was 99. Both of these figures are about the same as last quarter. However, the number of active listings jumped to 1300 which means we have approximately 8.4 months of supply on hand. It is this increasing supply of active listings that is concerning. On 6/15 we had a 7.3 months supply so clearly we are listing more and not selling an equal amount.

*As always, I have used the MLS statistics for all of Lake Norman with the exception of the North Catawba River area.

4/1/07 – 6/30/07 Sales by Price Range

Price Range
# Sold
%
# Active
%
DOM
$ 1
to
$ 99,999
12
2.59%
10
0.77%
83
$ 100,000
to
$ 199,999
50
10.80%
48
3.69%
87
$ 200,000
to
$ 299,999
92
19.87%
174
13.38%
80
$ 300,000
to
$ 399,999
81
17.49%
165
12.69%
86
$ 400,000
to
$ 499,999
56
12.10%
179
13.77%
89
$ 500,000
to
$ 599,999
52
11.23%
140
10.77%
128
$ 600,000
to
$ 699,999
34
7.34%
163
12.54%
141
$ 700,000
to
$ 799,999
24
5.18%
107
8.23%
150
$ 800,000
to
$ 899,999
19
4.10%
74
5.69%
121
$ 900,000
to
$ 999,999
11
2.38%
49
3.77%
70
$ 1,000,000
to
$ 1,249,999
13
2.81%
50
3.85%
58
$ 1,250,000
to
$ 1,499,999
4
0.86%
54
4.15%
79
$ 1,500,000
to
$ 1,749,999
5
1.08%
24
1.85%
111
$ 1,750,000
to
$ 1,999,999
3
0.65%
29
2.23%
112
$ 2,000,000
to
$ 2,999,999
6
1.30%
18
1.38%
136
$ 3,000,000
to
$ 3,999,999
1
0.22%
12
0.92%
162
$ 4,000,000
to
$10,000,000
0
0.00%
4
0.31%
TOTAL
463
100.00%
1300
100.00%
99

This chart is more meaningful to potential buyers and sellers because you can go to your price range and see the numbers of active listings and sales as well as the average days a listing in a particular price range took to sell.

There are some obvious hot price ranges like $100,000 – $199,999 where 50 sold and there are only 48 active listings! This price range represented 10.8% of our sales and yet is only 3.69% of our listings. If you take a look at the $400,000 price range you can see that while there were 56 properties sold there are 179 active listings which equals about a 9.5 months of supply on hand. If you are a buyer you then know that there are many listings to choose from in your price range and that you might be able to make a bit lower offer. This is even truer in the $600,000 to $799,000 price range when the days a listing is on the market jumps to about 150 which is almost twice as long as the hotter price ranges.

So, where are we headed? Being very busy myself right now, I am beginning to sense an upswing in our Lake Norman market. I have seen some listings sell that have been sitting throughout our traditionally hot spring market. Whether this is just a blip on the radar screen or a sign of greater things to come remains to be seen. Stay tuned!

Related Posts

Mooresville NC Housing Market Report
Lake Norman Real Estate: A Snapshot of the Current Home Sales
Lake Norman Real Estate: Are We Swimming in the Number of Homes for Sale?
Lake Norman Real Estate Hotsheet: Market Update

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