As expected based upon last month’s strong “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 May 2009. The question is how much of a role the April 30th tax credit deadline played in these improved numbers:
Lake Norman Real Estate’s Two-Week Hot Sheet 5/6/2010 –5/20/2010
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. (May 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.
May 15, 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 122 is down from last month and last May 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. Overall, our Lake Norman active listings are hovering in the 1372 range as of this morning which is slightly higher than last month.
- The number of properties that came back-on-the-market, most likely due to cancelled contracts decreased from last month but were fairly close to our May 2009 numbers. 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! When you think that we closed 44 sales in the past two weeks but had 40 come back on the market it truly is a wash which is why our pending sales remain flat compared to last month…just as many came on as fell out.
- The number of price changes dropped slightly when compared to last month. They were also lower than May 2009. Sellers are continuing to drop their listing prices in order to attract buyers. 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 remain nearly identical to the past two months which would lead me to believe that we will have similar closed sales this month when compared to last month.
- The number of closed sales in the past two weeks increased 13.9% compared to last month and 52% compared to May 2009. While any increase in sales is good news, based upon the rather flat trend in the number of pending and conditional sales this past month I expect our May sales to be about the same as last month. One important factor to note in this number is that our MLS calculates the closed sales date for their Hot Sheets based upon the day the listing agent inputs the data, not the actual date it closed. When I did a search using the actual date sold, I found that, in fact, there has been only 34 sales so far in May 2010. The rest would be sales that closed in April but were not input into the MLS until this month.
- Contingent and Conditional sales remain flat when compared to last month AND May 2009. These represent the most recent accepted offers. This may be an indiation that our next few months sales will be similar to last month’s 84. They should be higher than May 2009 but may not match June 2009 sales.
There has been a subtle shift in our Lake Norman real estate market lately. Along with the bargains and distressed sales there have been some very quick sales of homes that were not bargains. A waterfront home in The Harbour sold in one day for $920,000, and an estate sale waterfront property, also in The Harbour, went under contract BEFORE the auction… to name just a few. While buyers still want to take advantage of our Lake Norman housing market’s downturn, there seems to be a growing number of buyers that buy when they find a good property even if it isn’t a “deal”.