As I was preparing this summary of Lake Norman’s October housing market my curiosity got the better of me. While it is important to compare our sales to October 2007 we are now well ove a year in our Lake Norman real estate downturn and so I realized it is very important to now look at our sales in context of the past 4 years to get a grasp of the entire picture of our Lake Norman housing market.
So, first I did my usual monthly analysis:
Lake Norma Real Estate Market Statistics for October 2008
|Lake Norman||2008||Average $||DOM||2007||%+/-||Ave $||%+/-||DOM||%+/-|
|Months of Supply||24.1|
Briefly, you can see that sales dropped 48% versus October 2007, our months of supply of active listings were down from our high of about 1789, but relatively speaking are the highest yet at 24.1 months due to the drop in the number of home sales. Okay, so our Lake Norman home sales are still trending downward and our inventory is still exceptionally high. Not surprising news to anyone!
Knowing we are going into our slowest time of year, I decided to take a look at the historical data by month since 2004 so we can get a better idea of where we have come from to help us determine where we are and future trends for the Lake Norman residential real estate market. Here is what I found:
Lake Norman Homes Sales by Month; 2004 – 2008
As you can see, Lake Norman real estate peaked in 2005 and started its downward trend in July of 2006. The most significant decline has been this past year when we have dropped to less than half of the the previous years’ sales each month. Traditionally we would expect to see the usual holiday slowdown with an uptick in sales next March.
Considering the number of active listings we currently have in the Lake Norman real estate market, these next few months are going to be tough even if we meet the sales numbers of last year. I expect to continue to see prices drop until our inventory decreases to about half of what it is today. Whether that is in 6 months or several years is very hard to predict until we get a better handle on the global economic crisis.
FYI, my blog’s server has been down for almost 2 weeks and is still not functioning properly. I apologize for the interruption and can’t wait to get back to writing on a regular basis!