As expected based upon last month’s jump in “pending” home sales in our Lake Norman area, our closed sales show signs of improvement both when compared to last month and the same period in April 2009.
Lake Norman Real Estate’s Two-Week Hot Sheet
4/6/2010 – 4/20/2010
The above chart is a summary of today’s “Hot Sheet” from the Charlotte Multiple Listing Service for single family homes in all of Lake Norman (area 13). These numbers represent a real time snapshot of the past two week’s activity. (April 6-20th). As always, I have included the past 5 months so that you can put these numbers in perspective.
Below is the 2009 chart for the same exact same period for your reference.
April 17, 2009 Hot Sheet
- New listings: After a surge in March, the number of new listings has tapered off a bit which is good news. Our last two week’s total of 133 is down from last month and last April 2009. As you probably know if you follow my reports, we need to get our inventory down to about 8 months of supply in order to be considered a balanced market which will ultimately be achieved by a combination of a significant increase in sales coupled with a decrease in the number of active listings
- The number of properties that came back-on-the-market, most likely due to cancelled contracts increased from last month and compared to April 2009. The combination of the challenges related to shortsales and successfully getting home loans has added to the number of pending sales that are canceled. Banks continue to make real estate transactions extremely challenging!
- The number of price changes jumped by almost 30% compared to last month. They were also higher than those in April 2009. Sellers are getting more motivated and seem to want to take advantage of our seasonal increase in activity by enticing buyers with price reductions. This is a good sign for our Lake Norman housing market however there are still a large number of over-priced listings on the market.
- Pending home sales remained steady. These are contracts that are likely to close in the next month or so. They are higher than April 2009 which would lead one to believe that closed sales will be higher this month and in May as well.
- The number of closed sales in the past two weeks increased 40% compared to last month and 34% compared to April 2009. While any increase in sales is good news, based upon the high number of pending and conditional sales this past month I had expected to see significantly higher closed sales so far in April. Since we have more closings at the end of the month, I predict we will have about about 75 closed sales in April. While this is higher than April 2009 we will not come close to the 90 closed sales in April of 2008.
- Contingent and Conditional sales were actually down slightly compared to last month. These represent the most recent accepted offers. It will be interesting to see if this number will jump at the end of the month as buyers try to make the April 30th deadline for the tax credit programs.
Honestly, I am a bit disappointed in our April numbers for the Lake Norman area. While many originally thought spring and summer 2010 might be the time when our housing market strengthened, I would like to revise my forecast for the 2010 Lake Norman housing market. Unfortunately, I don’t think we will see real signs of stabilization and our bottom until 2011. In my opinion, 2010 will be more of the same as 2009. However, I have noticed certain pockets of good news which I will write about in the future!