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 $500,000’s. This is the reason why I create a price-range analysis every quarter for my readers:
*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.
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 2014
- 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 at this time
- 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. (A balanced housing market is 6 – 8 months so you can use this to gauge your price range).
- These quarterly numbers certainly substantiate what I have noted in my recent Lake Norman monthly home sales analysis. It is also interesting to compare these to last year’s 1st quarter and see which price ranges are out performing and which are weaker. Over all, our sales for the 1st quarter of 2014 were 8.6% lower than the 1st quarter of 2013. At the same time our inventory of active listing is actually 10.7% higher than 2013’s. The net result is that our overall months of supply (or absorption rate) has increased from 11.38 in 2013 to 13.3 today. While sales have definitely picked up in the past few weeks, our entire first quarter was relatively slow and our inventory of active listings is still growning.
- The lowest price ranges remain the strongest. These would include home prices up to$299,999 all of which fall under 8 months of supply of active listings and are therefore in a balanced market favoring neither the buyer nor the seller. This is down from $599,999 last quarter.
- The $1,500,000 – $1,749,999 price range also landed decent numbers if we look at the first four columns. This price range represented 1.51% of our 1st quarter sales and 1.59% of our inventory of active listings for sale. However, with 14 months of supply of active listings they are still clearly a buyers market.
- Our luxury homes above $1 million represented 6.42% of our 1st quarter sales but make up 14.4% of our current active listings. Clearly, while we very recently have seen more luxury homes going under contract and even selling outside of our MLS, they are still very much in a buyers’ market. Too many for sale for the number of sales…too much supply with too little demand.
- The $0 – $399,999 price ranges represented 52.46% of Lake Norman home sales and only 34.56% of the active listings.
- Lake Norman’s overall Months of Supply of active listings has increased to 13.3 compared to our 4th quarter’s 7.7 so now clearly falls well above the balanced market of 6-8 months. However, we are now passed our slowest time of year so this number will improve.
- 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!
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. If you fall in the $400,000 – $599,000 price range you might want to look for opportunities in the 500,000’s where there are fewer sales and a substantial number of active listings. .(12.4 months of supply). You will face more competition in the $400,000’s.
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 $400,000 listing price, it would clearly be prudent to price your home in the high $300,000’s where there were 27.5% more properties sold (and more buyers).
Questions about this report or the overall Lake Norman real estate market? Send me a quick email: firstname.lastname@example.org. 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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