If you are a home buyer or seller in the Lake Norman area it really only matters what is happening in YOUR price-range. Yes, it is important to know about the global economy, the national economy and the Charlotte area economy and real estate market but real estate is hyper-local here so it is most meaningful for you to learn about the Lake Norman real estate market and within that, your specific niche. For instance, if you are looking to buy or sell in the $700,000 price range, you are going to have an entirely different experience than someone in the $800,000’s. This is the reason why I create a price-range analysis every quarter for my readers and clients:
Lake Norman’s 1st Quarter 2018 Home Sales By Price Range
*Compiled from the Carolina Multiple Listing Service’s data, this chart enables you to focus on your specific price range(s) rather than use the broad-brush approach thus allowing you to size up your competition and better position yourself.
How to read this report:
- First choose a price range.
- The next column provides the actual number of listings sold in this price range in the 1st quarter of 2018
- This is followed by the percentage this price range represents of the total number of listings sold in all of Lake Norman
- Next is the number of active listings in this price range today
- This is followed by the percentage this price range represents of the total number of active listings
- Finally, the last column represent the absorption rate or the number of months of supply for each price range based upon the number of listings divided by the number of sales. (A balanced housing market is 6 months so you can use this to gauge your price range).
Just for fun, let’s compare this to the 1st Quarter 2017 Price Range Chart:
- Our overall months of supply (absorption rate) of 6.68 would put our Lake Norman real estate market in a balanced market favoring neither buyer nor seller with a slight edge to buyers. Note that a year ago we had 7.32 months of supply so our market this year favors buyers a bit less.
- Our current inventory of 757 single family homes is 10% less than last year’s 842 while our number of homes sold is just slightly lower than the 1st quarter of 2017. Our inventory levels are quite low which may be impacting our overall sales in certain price ranges.
- Our strongest price ranges were those up to $399,000 which is where we are seeing multiple offers on a regular basis. Look at their months of supply! From a low of only 1.17 months to a high of 3.88 months indicates very fast sales, very low inventories…most definitely a hot seller’s market
- What is really striking is that the only other price range to fall into a strong seller’s market is the$1,750,000 – $1,999,999! All other price ranges were in a buyer’s market during our first 3 months but things are changing quickly as we enter our peak months.
- The most improved price ranges when compared to 2017 are all in our luxury market including the $900,000’s, The $1,000,000 – $1,999,999’s and the above $3,000,000. What a fascinating look into our higher end price ranges which overall have been struggling to recover from the recession.
- Our weakest price range was the $2 millions but above and below these were very strong improvements.
- Our trade-up price ranges from $500,000 – $900,000’s are all in a buyer’s market. They represented only 24.19% of our sales while 39.45% or our active listings.
- If you look just at our months of supply, there is very little difference between the $600,000’s up to $1,499,999.
- To put this in historical perspective, in the 1st quarter of 2009 we had only 111 sales but 1546 active listings and a whopping 46.4 months of supply for all of Lake Norman!
- Keep in mind that we are looking at the traditionally weakest season for Lake Norman home sales so I expect to see some of our mid price ranges to move back into a seller’s market in the next quarter.
As a buyer, the chart above will show you where you might face the stiffest competition and at what price ranges you might see opportunities. If you fall in the $350,000 – $450,000 price range you might want to look for opportunities in the 400,000’s where there are about half the number of sales and 9% MORE active listings to choose from. The higher the months of supply in a price range the more it favors the buyer. There is only a 3.88 months supply of homes for sale in the $300,000’s price range while there is an 8.69 months supply of active listings in the $400,000’s.
As a seller, you can look at the Lake Norman real estate market’s activity by price range and if you are right on the cusp of, for example, a $2,000,000 listing price, it would clearly be prudent to price your home slightly under $2,000,000 where there are only 8 active listings and a 3.5 months of supply compared to 26 listings and a 45.5 months of supply in the $2,000,000. Wow!
I am so used to this chart that it is easy for me to understand but if you have ANY questions about this report and your specific price range or the overall Lake Norman real estate market by all means call me or send me a quick email: email@example.com. Please note that in all of the price range charts I am actually using data from the 15th of the month so these numbers won’t match perfectly with the monthly or annual sales numbers I provide.
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