If you are a home buyer or seller in the Lake Norman area 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:
Lake Norman’s 1st Quarter 2016 Home Sales By Price Range
*Compiled from the Carolina 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. Please note that these numbers are actually from the 15th of January to to the 15th of April so they will differ slightly from my monthly market reports.
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 4th quarter of 2015
- This is followed by the percentage this price range represents of the total number of listings sold in all of Lake Norman
- Next is the number of active listings in this price range today
- 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).
- Our overall months of supply (absorption rate) of 9.67 puts our overall Lake Norman real estate market in a buyers market. Note that a year ago we had 6.79 months of inventory. (See chart below)
- Our current inventory of 842 single family homes is 52 below last year’s. While improving, this underscores just how low our number of active listings is right now.
- Our strongest price ranges were once again those up to $399,999. They are all in a seller’s market.
- Listings $400,000’s are barely in a balanced market but above that all price ranges are significantly in a buyer’s market. Above $499,999 the strongest price range is the $700,000’s and even they have 14.74 months of inventory!
- Our weakest price ranges now start in the $500,000’s whereas last quarter they started in the $600,000’s and above.
- Our strongest price range was the $300,000’s where we had 23.2% of our Lake Norman sales with only 11.39% of our inventory which computes to a 4.73 months of supply
- Look at those months of supply for our luxury price ranges, they are extremely high!
- If you compare this year to last year’s 4th quarter, the price ranges that stand out as particularly weak are those in the $600,000s and above.
- Lake Norman’s overall Months of Supply of active listings at the end of our 1st quarter 2016 was 9.67 compared to the 4th quarter’s 7.16. 3rd quarter 2015’s 5.99, 6.23 in the second quarter 2015, 6.79 in the 1st quarter.
- To put this in historical perspective, in the 2nd quarter of 2009 we had only 208 sales but 1585 active listings and a whopping 22.8 months of supply for all of Lake Norman!
As a seller, 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 $375,000 – $425,000 price range you should consider listing just under $400,000 since there were almost twice as many sales in the $300,000’s than the $400,000’s. Take advantage of the weaker price ranges if you can!
As a buyer, you can look at the Lake Norman real estate market’s activity by price range and also look for opportunities. For instance, if you are in the high $300,000’s to $400,000’s you might want to focus on listings in the $400,000’s where sellers may be more motivated and there is less competition.
One final caveat: Our Lake Norman real estate market has now entered a very active period. Sales have jumped after a dip in March so while the above is a great tool, you will need to adjust your process to our current levels of activity!
1st Quarter 2015 Price Range Analysis:
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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