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 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 4th Quarter 2017 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 4th quarter of 2017
- 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 4th Quarter 2016 Price Range Chart:
- Our overall months of supply (absorption rate) of 4.56 would put our Lake Norman real estate market in a seller’s market. Note that a year ago we had 5.53 months of supply so our market this year favors sellers even more.
- Our current inventory of 637 single family homes is 9.1% less than last year’s 701 while our number of homes sold is 10.4% HIGHER than the 4th quarter of 2016. Our inventory levels are at their lowest yet sales are at their highest!
- Our strongest price ranges were those up to $299,000 which is where we are seeing multiple offers on a regular basis. Look at their months of supply! From a low of only .88 month to a high of 2.69 months indicates very fast sales, very low inventories…most definitely a hot seller’s market
- The $300,000 – $599,999 and the $800,000 – $999,999 price ranges are the second strongest and are also in a seller’s market but not quite the extremes of the lowest price ranges.
- The $600,000’s – $799,999’s, are the next strongest price ranges but they fall overall slightly into a buyer’s market with 7.6 months of supply. (A balanced market is 6 months).
- Homes above $1,000,000 are in various levels of a buyers market but they show marked improvement over the 4th quarter 2016. (36 sales vs 28)
- Our weaker price ranges were above $3,000,000 followed by $1,750,000 – $1,999,999 and then $1,000,000 – $1,499,999. Sales in the $2,000,000’s were actually relatively good!
- Our luxury home sales above $1 million represented 7,35% of our 4th quarter 2107 while currently representing 17.2% of our active listings. That said, there is real improvement in our luxury market compared to prior years since the recession. Look at the number of months of supply of these price ranges even compared to last year!
- 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!
- This year’s 4th quarter has set several new monthly sales record. You can see above exactly what price ranges contributed the most to these numbers.
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 $550,000 – $650,000 price range you might want to look for opportunities in the 600,000’s where there are about half the number of sales with only 24% fewer active listings. The higher the months of supply in a price range the more it favors the buyer. There is only a 5.25 months supply of homes for sale in the $500,000’s price range while there is an 7.6 months supply of active listings in the $600,000’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 $1,000,000 listing price, it would clearly be prudent to price your home slightly under $1,000,000 where there was twice the number of sales and only two thirds the number of active listings. (3.89 months of supply compared to 11.67. Wow!)
One final caveat: Our Lake Norman real estate market finished 2017 very strong. We are now heading into our spring market with an extremely low number of homes for sale. A lot of our future months success depends on how many new listings come on the market.
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: firstname.lastname@example.org. 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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