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 $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 and clients:
Lake Norman’s 3rd 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 3rd quarter of 2017
- 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).
Just for fun, let’s compare this to the 3rd Quarter 2016 Price Range Chart:
- Our overall months of supply (absorption rate) of 4.67 would put our overall Lake Norman real estate market in a seller’s market. Note that a year ago we had 5.23 months of supply so our market this year favors sellers even more.
- Our current inventory of 798 single family homes is 5.1% less than last year’s 841 while our number of homes sold is 6.2% HIGHER than the 3rd quarter of 2016.
- Our strongest price ranges were those up to $299,000 which is where we are seeing multiple offers on a regular basis. Look at their months of supply! From a low of only 1.84 months to a high of 3.5 indicates very fast sales, very low inventories…most definitely a seller’s market
- The $300,000 – $499,999 and the $800,000 – $999,999 price ranges also fall in a strong buyer’s market but not quite the extremes of the lower price ranges.
- The $500,000’s – $799,999’s, and $1,000,000-$1,499,999 price ranges fall overall into a balanced market favoring neither buyers nor sellers.
- Home above $1,500,000 to $1,749,000 are just slightly in a buyers market but are still relatively strong. The rest of the price ranges are technically in a buyer’s market.
- Our weaker price ranges were all price ranges at or above $1,750,000 with exceptionally low sales in the $1,750,000 – $1999,999 where we only had ONE sale!
- Our luxury home sales above $1 million represented 9.51% of our 3rd quarter 2107 while currently representing 17.9% of our active listings. That said, the improvement in our luxury market is remarkable. Look at the number of months of supply of these price ranges compared to last year!
- 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 set several new monthly sales record. 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 $450,000 – $550,000 price range you might want to look for opportunities in the 500,000’s where there are about half the number of sales with only 36% fewer active listings. The higher the months of supply in a price range the more it favors the buyer. There is only a 5.27 month supply of homes for sale in the $400,000’s price range while there is an 6.51 month supply of active listings in 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, an $1,750,000 listing price, it would clearly be prudent to price your home slightly under $1,750,000 where there was 9 times the number of sales and just about an equal number of active listings. (7.78 months of supply compared to 77. Wow!)
One final caveat: Our Lake Norman real estate market has been hot all year. Now that we are entering the last three months of the year our sales activity usually experiences a seasonal slowdown so you may need to adjust your process to our seasonal 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.
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