If you are a home buyer or seller in 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 $700,000?s. This is exactly the reason why I create a price-range analysis every quarter:
*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 last year’s 3rd quarter sales analysis of Lake Norman homes 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 2012
- 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.
- I don’t think I have every seen a market with strengths and weakness so clearly defined. These quarterly numbers definitely substantiate and underscore what I have noted in my monthly Lake Norman sales analysis. The price ranges up to $599,999 and $1million to $1.25 million are in a league of their own. It is hard to understand why the $600- $999,999 price ranges are relatively weak (Although I can say that the selection of homes for sale in these price ranges are pretty bleak) but the $1 million to $1.25 million are remarkably and consistently strong.
- Sales of Lake Norman homes when compared with the amount of inventory remain strongest in the lowest price ranges. The $0 – $399,999 price range represented 51% of Lake Norman home sales and only 40% of the active listings. Properties up to $399,999 currently have an absorption rate of 6.0 months compared to the 3rd quarter of 2011 when they had 7.5 months of supply.
- The second strongest price ranges these past 3 months were the $400,000- $599,999’s, the $1,000,000-$1.25 million and $1.25 million to $1.5 million, all of which had higher or almost equal percentages of numbers sold than percentages of active listings. (Note that these price ranges also had the lowest/best months of supply numbers as well).
- Our weakest price ranges in the past 3 months were the $900,000’s and homes over $1,500,000. There price ranges were truly abysimal when compared with the others. It is almost like Lake Norman home sales have two entirely different markets. One very strong and one very weak. But our combined sales continue to be strong despite the weak links.
- 10.7% of our home sales were at or above $800,000 compared to 12.1 last quarter.
- Lake Norman home sales (mostly waterfront) in the $1 million – $1.25 were incredibly strong and the next higher price range up to $1.5 million were almost as strong but then there is a HUGE drop off above $1.5 million. There were only 5 closed sale over $1.5 million. Our highest priced luxury housing market in Lake Norman is still struggling.
- Our overall Months of Supply of 7.7 was the lowest/best quarter since the recession. To put this year’s 3rd quarter in perspective, in the first quarter of 2011 we had 21.99 months of supply and, in the 4th quarter of 2009, we had a staggering 46.4 months of supply of homes for sale in Lake Norman! All of our Lake Norman real estate numbers are trending in a positive direction and have been for quite some time. (see my other Lake Norman home sales analysis by clicking on the Market Reports category in the right hand column of this page.
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. 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 twice as many 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: 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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