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 2nd Quarter 2015 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 1st 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).
Compare this to the 2nd quarter 2014 price range analysis:
- Our overall months of supply (absorption rate) of 6.23 puts our Lake Norman real estate market squarely in a balanced market; favoring neither buyer nor seller. Note that a year ago we had 8.42 months of inventory!
- Our current inventory of 953 single family homes is well below not just last year but all previous years which is attributing to the trend towards a sellers market these past few months.
- Our strongest price ranges were those up to $499,999 which has risen from up to $300,000 last quarter. All price ranges above $500,000 were clearly in a buyer’s market with the exception of the $600,000’s that was in a balanced market. That said, our trade-up price ranges of $600,00-$899,999 are showing significant signs of improvement. Clearly Lake Norman is not longer depending on the very lowest price ranges for sales.
- Our weakest price ranges as has been the case since the recession were the luxury price ranges above $1,000,000. Also showing signs of exceptional weakness were the $500,000’s and the $900,000’s which was also the case last quarter.
- If you compare this year to last year’s first quarter, the price ranges that stand out as particularly weak are also the $500,000’s, the $900,000’s, the $1,500,000-$1,999,999.
- Comparing the overall numbers of this past quarter to 2014 we had 21% higher sales with 11% fewer homes for sale.
- Our luxury homes above $1 million represented only 6.92% of our sales and currently represent 16.35% of our active listings.
- Lake Norman’s overall Months of Supply of active listings at the end of our 2nd quarter 2015 was 6.23 compared to the 6.79 in the 1st quarter and 4th quarter 2014’s 6.89. Clearly our low inventory and higher sales have created a balanced market in Lake Norman although as of our June sales we have moved towards a sellers’ market.
- 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 (see chart below)!
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 $450,000 – $550,000 price range you might want to look for opportunities in the 500,000’s where there are 47% fewer sales with almost the same number of active listings which makes it double the months of supply of active listings. Take advantage of the weaker price ranges if you can!
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 more sales and less inventory. Avoid pricing your property in the $500,000’s or $900,000’s or $1,500,000 – $1,749.999!
Just for fun I decided to look back at our worst 2nd quarter since I have been keeping these records. Check out 2009:
WOW! 1585 active listings and only 208 sales for a 22.8 months of supply. Those were some tough times but we survived!!!
One final caveat: Our Lake Norman real estate market is HOT right now so while these numbers are a good reflection of the past 3 months, you will need to adjust your process to our intensity of activity!
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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