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 for you 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 $900,000 price range, you are going to have an entirely different experience than someone in the $800,000’s. This is the reason why I create a price-range analysis every quarter for my readers:
Lake Norman’s 1st Quarter 2017 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.
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 2016
- 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 months so you can use this to gauge your price range).
Compare this to the 1st Quarter 2016 Price Range Chart:
- Our overall months of supply (absorption rate) of 7.32 would put our Lake Norman real estate market in a buyer’s market. However, please note that over half of our sales this past quarter were in March so in reality we are now in a seller’s market in many price ranges.. Note that a year ago we had 9.67 months of supply so at that time Lake Norman was very much in a buyer’s market.
- Our current inventory of 842 single family homes is identical to last year’s while our number of homes sold is a whopping 32.1% HIGHER than the 1st quarter of 2016.
- Our strongest price ranges were once again those up to $399,000 which is typical but look at their months of supply! From a low of only .44 months to a high of 4.28 indicates very fast sales, very low inventories and even multiple offers in these price ranges.
- The next strongest group of price ranges has expanded significantly since last year. If we look strictly at months of supply, I would include all price ranges from $400,000 – $799,999 and the $1,000,000-$1,249,999. These are all technically in a buyer’s market however if you look at the 2016chart above and compare you can see that our trade-up price ranges have improved significantly and even or luxury market has shown notable improvement.
- At the same time, our weakest price ranges were all price ranges at or above $1,250,000. Our luxury market is still overall in a buyer’s market but you can see several of the price ranges have done better than others and most are stronger than last year’s.
- Our luxury homes above $1 million represented 7.44% of our 1st quarter sales while currently representing 19.56% of our active listings. This unbalance underscores the weakness in these price ranges.
- Lake Norman’s overall Months of Supply of active listings at the end of our 4th quarter 2016 was 7.32 compared to the 2016’s 9.67. Clearly our low inventory and higher sales have lowered this number and I expect with rising sales in the next few months that we will drop down under 6 months which will put us leaning towards a seller’s market. Our Lake Norman real estate market is currently very active so it will be interesting to see our 2nd quarter 2017 numbers!
- 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!
- This year’s 1st quarter has set several new records, especially March. You can see above exactly what price ranges contributed the most to these numbers.
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 $950,000 – $1,050,000 price range you might want to look for opportunities in the 900,000’s where there are 53.3% fewer sales with only 18% fewer active listings. The higher the months of supply in a price range the more it favors the buyer. There is only a 10.27 month supply of homes for sale in the $1,000,000 – $1,250,000 price range where there is an 18 month supply of active listings in the $900,000’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, an $800,000 listing price, it would clearly be prudent to price your home in the $700,000’s where there was almost 3 times the number of sales and and only 39% more competing active listings.
One final caveat: Our Lake Norman real estate market has been picking up steam in a big way since the beginning of the year and we are now heading in to our strongest months of the year so you will need to adjust your process to our current patterns of activity.
I am so used to this chart that it is easy for me to understand but if you have ANY questions about this report and your specific price range or the overall Lake Norman real estate market by all means call me or 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.
OTHER ARTICLES of INTEREST