Lake Norman Real Estate’s Friday Hot Sheet April 17, 2009
* Data from Charlotte Regional MLS
Above is a chart with today’s “Hot Sheet” numbers from the Charlotte Regional Multiple Listing Service for single family homes in the Lake Norman area (13/1 – 13/5). These numbers represent a snapshot of the past two weeks of activity. As always I have included prior months so that you can put these numbers into context.
Here are some highlights:
New listings are increasing. While this is normal for this time of year, our total number of active listings in the Lake Norman area has climbed back up to 1623 at a time when sales are still very low so our conditions are actually worsening. If we combine the new and back on the market listings during this two week period we increased our number of active listings by 197 while the number of contingent/conditional/pending and solds resulted in a total of 78 homes being removed from our active inventory for a net gain of 119. The single most important thing we need to see before we can conclude that our Lake Norman housing market has bottomed out is a reduction of the number of active listings to about a 6-8 months of supply. Right now we have a 35 months of supply.
The number of homes coming back on the market has again increased slightly. These are homes that were under contracts and were cancelled. The fact that twice as many homes had canceled contracts than closed shows the volatility in our market!
Price changes remained identical to last month. Sellers are reducing their prices because of the slow market.
The number of pending sales increased slightly. These are the homes under contract that have gone through all of their inspections, obtaining loan approval and a ready to close.
The number of contingent and conditional sales dropped by 30% versus last month. These are the homes that went under contract in the past two weeks and would indicate that our future sales are not increasing and are in fact decreasing slightly at a time when we are hitting our peak Lake Norman home sales season.
So far in April we have had 32 home sales close compared to 49 in the same period last year. This is a drop of 35%. The average price dropped 11.5%.
Clearly, we are not out of the woods yet! I personally have seen an increase in showings and sales in the first-time buyer price ranges which are most likely a result of the $8000 credit/rebate. Sales requiring jumbo loans are hampered by the higher rates and conditions. I am going to write a separate article about jumbo loans this next week.
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