If you are a home buyer or seller in the Lake Norman it really only matters what is happening in YOUR price-range. Yes, it is important to know about the global economy, the national economy and the Charlotte area economy and real estate market but real estate is hyper-local so it is most meaningful to learn about the Lake Norman real estate market and within that, your specific niche. For instance, if you are looking to buy or sell in the $400,000 price range, you are going to have an entirely different experience than someone in the $700,000’s. This is exactly the reason why I create a price-range analysis every quarter:
*Compiled from the Charlotte Regional Multiple Listing Service’s data, this chart enables you to focus on your specific price range(s) rather than use the broad-brush approach thus allowing you to size up your competition and better position yourself.
** Compare this to 2012 1st quarter sales analysis of Lake Norman homes by price range
How to read this report:
- First choose a price range.
- The next column provides the actual number of listings sold in this price range in the 1st quarter of 2013
- This is followed by the percentage this price range represents of the total number of listings sold in all of Lake Norman area 13
- Next is the number of active listings in this price range
- This is followed by the percentage this price range represents of the total number of active listings
- Finally, the last column represent the absorption rate or the number of months of supply for each price range based upon the number of listings divided by the number of sales.
- These quarterly numbers definitely substantiate and underscore what I have noted in my recent Lake Norman sales analysis. The lowest price ranges up to $299,999 and the $1 million to $1.25 million are in a league of their own. They are truly in a seller’s market based upon their very low inventory compared to their relatively high sales.
- The $300,000-$599,000 are the second strongest group of price ranges having 11.2 – 13.5 months of supply which puts them in a buyer’s market slightly above the 6-8 months for a balanced housing market.
- The $900,000 – $999,999 and our luxury homes above $1.25 million are extremely weak and could truly be classified as still in a recession level.
- Percentage of sales of Lake Norman homes when compared with the amount of inventory remain strongest in the lowest price ranges. The $0 – $299,999 price range represented 41% of Lake Norman home sales and only 18.6% of the active listings. And, the $1 million – $1.25 million were 4.29% of our sales while being only 2.64% of our inventory
- Lake Norman home sales (mostly waterfront) in the $1 million – $1.25 continue to be remarkably strong. There is a HUGE drop off in sales above $1.5 million. There were only 10 closed sale over $1.5 million in our first quarter. However, last year we only had 6 sales so while our highest priced luxury housing market in Lake Norman is still struggling there is some improvement.
- Our overall Months of Supply of 11.38 is again well above a balanced market of 6-8 months. However, it is down from the 1st quarter of 2012 when we had 14.43 months of supply for sale in Lake Norman.
- To put this in historical perspective, in the 1st quarter of 2009 we had only 111 sales but 1546 active listings and a whopping 46.4 months of supply for all of Lake Norman!
- All of our Lake Norman real estate numbers are trending in a positive direction and have been for quite some time. (See my other Lake Norman home sales analysis by clicking on the Market Reports category in the right hand column of this page).
As a buyer, the chart above will show you where you might face the stiffest competition and at what price ranges you might see opportunities. As a seller, you can look at the Lake Norman real estate market’s activity by price range and if you are right on the cusp of, for example, a $900,000 listing price, it would clearly be prudent to price your home in the high $800,000’s where there were more than twice as many properties sold (and more buyers) and comparatively less competition in active listings.
Questions about this report or the overall Lake Norman real estate market? Send me a quick email: email@example.com. Please note that in all of the price range charts I am actually using data from the 15th of the month so these numbers won’t match perfectly with the monthly or annual sales numbers I provide.
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