Want the very latest insight into our Lake Norman real estate market? So do I which is why, every month, I do a snapshot analysis of the middle two weeks of the month to get a sense of where we are at this very moment…an almost live insight into the heartbeat of the Lake Norman housing market.
I always get excited to do this Hot Sheet analysis each month because it provides me with a mid-month pulse of our Lake Norman real estate market. So where are we today? After a stunning March, strong April, and stunning May it looks like this trend is continuing in June and beyond. Let’s take a closer look:
Lake Norman Real Estate’s June 2017 Two-Week Hot Sheet
* 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. These numbers represent a real time snapshot of the past two week’s activity. (June 7th – 21st). As always, I have included the past 6 months so that you can put these numbers in perspective. Below is the May chart using my data since 2009.
June Hot Sheet Numbers for the Past 8 Years
So check out the closed sales of 115! They are by far the highest in the past 6 months AND all previous June Hot Sheets. The new contracts (Under Contract Show) are the best June since I began doing this report but they are slightly lower than last month’s and March’s of this year. Lake Norman’s overall number of single family homes under contract (UCS and UCNS) as of today are 365 compared to last month’s 395, April’s 380, March’s 347, February’s 275, January’s 199, and last year’s end of June 313. While signaling a slight slowdown since last month, when compared to last June’s, we certainly are maintaining a high rate of sales entering summer. With 119 closed sales as of today I think we have a chance to match last June’s huge closed sales of 211. Clearly, our overall Lake Norman real estate market is HOT!
- New listings: At 115, our number of new listings added in the past two weeks was down slightly from last month and last June’s but truly they are in line with most past June’s. As of today we have 966 active listings in all of Lake Norman up from last month’s 933 but still well below last June’s high of 1132.
- Our number of brand NEW “Under Contract but Continue to Show” homes, formally called Conditional and Contingent sales, at 92 as I stated above, dipped slightly but are still the highest June since I started keeping these numbers. Our current market is very active!
- Our number of Under Contract No Show/Pending sales, at 29, is the only disappointment on these charts. They are the lowest month this year since January and one of the weaker Junes. Since pending contracts indicate more imminent closed sales this may pose a threat towards meeting last June’s 211 sales. Pending or “Under Contract No More Showings” are contracts that have passed all of their conditions/contingencies/Due Diligence Deadlines and are just waiting to close. These home sales contracts will most likely close by the end of this month or in June.
- Our 115 Hot Sheet Closed Sales are the strongest since last fall and the highest June hot sheet since 2009. It will be really interesting to see how many sales we close this month. It sure looks good but we have to close almost 100 more in just one week! (Keep in mind, as always, that we have had a surge of new construction in the past 2 years so these MLS numbers are actually lower than our total sales because so many new homes are sold directly to buyers rather than through the MLS).
Clearly Lake Norman’s real estate market is still very active. As I predicted for the past several months, the dip in February was definitely short lived. Given our current momentum, I feel that we should maintain very strong sales numbers at least through July/August with a possible dip this month. Beyond that it is very hard to predict. I am still seeing quite a variety of trends depending on location, types of properties and price ranges. I just had three listings priced in the $200,000’s to low $300,000’s sell over the asking price with multiple offers in the first days of listing them and represented a buyer in multiple offer negotiations as well. (We won!). While our lower price ranges are exceptionally hot, the opposite is true of our waterfront and higher price ranges. I am showing properties in these price ranges and most of them have had price reductions and have been on the market for quite a while. It is like two entirely different markets exist in our Lake Norman area. Inventory is growing but competition is still strong for good new listings.
I am still counseling my buyers to watch the market daily for new listings and price reductions. The average days on market has dropped, especially for “good” new listings. But properties that aren’t perfect or are overpriced are sitting. If buyers are willing to do remodeling, then now is a great opportunity to buy an older waterfront home that needs work, has been on the market for a long time but is in a great location or has great water. The waterfront tear-downs/fixers are still coming on the market but at higher prices than in the early years after the recession. To get a nice waterfront home you really need to be looking at least in the $700,000’s depending on the location.
For sellers, the key is to stage every listing to perfection! That usually means freshly painted interiors (think Agreeable Grey at Sherwyn Williams), painting tired kitchen cabinets white when appropriate, refinishing hardwood floors or installing hardwoods or good laminates in dark tones, new counter tops if needed and professional staging. This makes a HUGE difference and has proven to add to the bottom lines in every listing I have had. Sellers, today it is more important than ever to stage your homes in order to maximize your profits!
After the rapid rise of mortgage interest rates after the election they dropped back down even after the most recent Fed rate hike. As of today they are about 4% for a 30-year fixed conforming loan or even lower. There are still so many unknowns for 2017 and the Feds are expected to raise rates again one more time this year so it is truly impossible to predict where we will be at the end of 2017.
Don’t forget that we have very few distressed sales, (Less than 2% of our inventory are distressed properties: foreclosures and short sales), so a bargain today is actually a well priced home that is in a very good location with a good floor plan. My Mantra for 2017 remains: Think location, good floorplans and resale and look for good waterfront opportunities before they are gone. And, if you find a property that suits you, don’t wait too long to act! Sellers: UPDATE and STAGE to perfection for maximum profits!
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