Lake Norman Real Estate: What Does August Tell Us?

Analyzing graphs and charts

Our Lake Norman real estate market is constantly in motion. I hear so many opinions from fellow Realtors here that I find myself turning to the MLS data regularly to see if there are any significant signs of change I can share with you.

August felt like a market that, while struggling, was beginning to show signs that home sellers and builders “get it”. Price reductions have been more significant and more frequent. Sellers that are not serious are pulling their homes off of the market choosing to wait it out. Those less fortunate, both sellers and builders, are now more frequently going into foreclosure, short sales or, at the very least, making substantial reductions before selling. Of course, sellers that priced a property correctly are still selling quickly.

Here is a snapshot look at our just completed month of August:

LAKE NORMAN AUGUST HOUSING REPORT

Lake Norman 2008 Average $ DOM 2007 %+/- Ave $ %+/- DOM %+/-
Active Listings 1716 $735,024 145
Contingent 16 $373,024 158
Conditional 30 $962,500 177
Pending 94 $529,915 130
Sold 75 $536,489 137 144 64% $486,381 10% 105 30%
Months of Supply 22.9

Numbers to note:

  • The number of active listings are creeping down from their peak of over 1800

  • The number of homes sold continues to drop…This month a harsh -64% which is especially tough because by August 2007 we were already in a declining market
  • The average sales price actually went up 10%…There are signs that some of middle and higher-end homes are selling
  • Because our sales dropped, we are still seeing over 22 months of supply of inventory…again, as a reminder, 6-8 months of supply represents a traditionally balanced market.

Historically September and October Lake Norman sales pick up a bit before the holiday slowdown. Because of the price-reductions I have been seeing I think we might just see some increase in sales versus this month. Interest rates are in the low 6% range so if a buyer can get a good loan, I’m beginning to think this is not a bad time to start thinking seriously about buying.

While the market will probably remain weak until mid 2009, there are some bargains to be had right now and probably will be from now on. If you have read my blog for very long you will know that I have not said: “This is a great time to buy”. However, I do think that there are some good bargains out there that I would encourage buyers to consider. Motivated sellers and builders may be what turns our local market around. Once we get our inventory down and regain buyers confidence we will once again enjoy our historically thriving Lake Norman housing market.

RELATED ARTICLES

Finding the Truth about Lake Norman’s Real Estate Market: A Case Study

Lake Norman Real Estate: We are NOT Charlotte!

Lake Norman Real Estate: What are the Experts Saying?

Lake Norman’s 2nd Quarter 2008 Real Estate Sales Analysis

Lake Norman Real Estate: Is New Construction Slammed by Housing Slump?

Did you like this? Share it:
This entry was posted in Lake Norman Real Estate, Market Reports, Mooresville Real Estate, Real Estate News and tagged , , , , , , . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>