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.
** Compare this to Lake Norman real estate’s 2012 3rd quarter sales analysis 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 3rd 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. (A balanced housing market is 6 – 8 months so you can use this to gadge your price range).
- These quarterly numbers certainly substantiate what I have noted in my recent Lake Norman real estate monthly sales analysis. They also show which price ranges are out performing last year’s 3rd quarter and where our strength and weaknesses are currently. Over all, our sales for the 3rd quarter 2013 were 16% higher than the 3rd quarter of 2012. At the same time our inventory of active listing is actually 9.8% higher than 2012’s. The net result is that our overall months of supply (or absorption rate) has increased from 7.7 in 2012 to 8.5 today. This is not a positive trend and underscores my recent concerns about the direction of our Lake Norman real estate market.
- The lowest price ranges remain the strongest. These would include home prices up to$300,000 all of which fall under 6 months of supply of active listings and are truly in a sellers’ market. Dropped from our top performing price ranges are the $500,000’s and a dramatic drop off of sales in the $1 million to $1.25 million (We only had 14 active listings in this price range in 2012 and we now have 43 which takes our months of supply from 5.25 in 2012 to 21.5 this past quarter!) which not only dipped below the % sales vs % listings but actually lost ground to the $1,500,000 to $1749,999 homes.
- The $300,000-$399,000, $500,000 – $599,999 (despite their drop off they are still stronger than most other price ranges), and $800,000 – $899,999 price ranges are the second strongest group of price ranges having 7.81 – 9.5 months of supply which puts them in or slightly above the 6-8 months for a balanced housing market.
- Our luxury homes above $1 million have weaken rather significantly when compared to 2012 with the exception of the $1,500,000 – $1,749,999. The $900,000’s, $1,000,000 – $1,249,000, $1,200,000 – $1,499,999, $1,500,000 – $1,749,999 and the $2,000,000 – $2,999,999 all logged between 4-7 sales each so were remarkably equal in sales volume.
- The $0 – $399,999 price ranges represented 52.3% of Lake Norman home sales and only 37% of the active listings.
- Lake Norman’s overall Months of Supply of 8.5 is now slightly above the balanced market of 6-8 months.
- 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!
- Overall, our Lake Norman real estate sales numbers are posting double digit increases and have been for quite some time, they just aren’t as robust as they were in the 2nd quarter of 2013. (See my other Lake Norman home sales analysis by clicking on the Market Reports category in the right hand column of this page). And, with our inventory of active listings up slightly, our balanced housing market seems to be tipping towards a buyer’s market once again.
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 – $600,000 price range you might want to look for opportunities in the 400,000’s which is weaker than the $500,000’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 $600,000 listing price, it would clearly be prudent to price your home in the high $500,000’s where there were 43% more 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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