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 $700,000 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 3rd 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.
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 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 3rd Quarter 2015 Price Range Chart
- Our overall months of supply (absorption rate) of 5.23 puts our Lake Norman real estate market leaning towards a seller’s market. Note that a year ago we had an almost identical numbers of 5.99 months of inventory!
- Our current inventory of 841 single family homes is actually slightly lower than last year’s while our number of home sold is 11.9% HIGHER than the 3rd quarter of 2015.
- Our strongest price ranges were those up to $399,000 which is typical but look at their months of supply! From a low of only 1.42 to a high of 3.78 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 – $1,249,999 which truly is amazing. All of these price ranges fall at or slightly above a balanced market favoring neither buyer nor seller for the first time since the recession. Not only have our “trade-up” price ranges improved so have the lower price ranges of our luxury housing market!
- At the same time, our price ranges at and above $1,250,000 still remain very much in a buyer’s market and were actually weaker this past quarter than in 2015 with the exception of the $3,000,000+ price range where inventory has dropped from 21 to only 11 and sales increased from 2 to 3.
- Our luxury homes above $1 million represented 7.63% of our 3rd quarter sales and currently represent 19.25% of our active listings.
- Lake Norman’s overall Months of Supply of active listings at the end of our 3rd quarter 2016 was 5.23 compared to the 2015’s 5.99. Clearly our low inventory and higher sales have now put us leaning towards a seller’s market. Our Lake Norman real estate market remains very active so it will be interesting to see our October and November sales!
- 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 3rd quarter has been the strongest and most consistent of all of 2016 and is responsible for pushing Lake Norman over all towards a seller’s market with annual sales now ahead of 2015’s year-to-date.
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 $850,000 – $950,000 price range you might want to look for opportunities in the 900,000’s where there are 33% fewer sales with an almost equal number of active listings.
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 $500,000’s where there was 29% more sales and 47 fewer competing active listings.
One final caveat: Our Lake Norman real estate market is more active than usual for the 4th quarter so you will need to adjust your process to our patterns of activity as we head into the holidays!
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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