If you are a home buyer or seller in the Lake Norman 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 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 $400,000 price range, you are going to have an entirely different experience than someone in the $500,000s. This is exactly the reason why I create a price-range analysis every quarter:
*Compiled from the Charlotte Regional 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.
** Compare this to Lake Norman real estate’s 2012 2nd quarter sales analysis by price range
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 2nd quarter of 2013
- This is followed by the percentage this price range represents of the total number of listings sold in all of Lake Norman area 13
- Next is the number of active listings in this price range
- 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 – 8 months so you can use this to gadge your price range).
- These quarterly numbers certainly substantiate what I have noted in my recent Lake Norman real estate sales analysis. They also show some new strengths when compared to our first quarter 2013 . The lowest price ranges that are florishing now include homes up to $399,999 (rather than $299,999). The lowest end price ranges are still the strongest. Dropped from our top price range was the $1 million to $1.25 million which not only dipped below the % sales vs % listings but actually lost ground to the $1,500,000 to $1749,999 homes.
- The $400,000-$499,000, $600,000 – $699,999 and $1,500,000 – $1749,999 price ranges are the second strongest group of price ranges having 6.42 – 7.72 months of supply which puts them in the 6-8 months for a balanced housing market.
- I think it is fair to note the increased strength of the $800,000 – $899,999 price range as well. This price range is flanked by two weak ones: the $700,000 – $799,999 and $900,000 – $999,999.
- Our luxury homes above $1.75 million are still relatively weak but all price ranges in this category have shown improvement.
- The $0 – $399,999 price ranges represented 52% of Lake Norman home sales and only 36% of the active listings.
- Lake Norman home sales (mostly waterfront) in the $1 million – $1.25 enjoy almost double the number of sales of all price ranges above it. However, the number of sales in this price range were identical to the 1st quarter where as all of the higher price ranges experienced increases.
- Lake Norman’s overall Months of Supply of 7.28 now falls well within the balanced market of 6-8 months.
- 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!
- Overall, our Lake Norman real estate numbers are trending in a positive direction and have been for quite some time. (See my other Lake Norman home sales analysis by clicking on the Market Reports category in the right hand column of this page).
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 $400,000 – $600,000 price range you might want to look for opportunities in the $500,000’s which is weaker than 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 $900,000 listing price, it would clearly be prudent to price your home in the high $800,000’s where there were more than three times as many properties sold (and more buyers) and comparatively less competition in active listings.
Questions about this report or the overall Lake Norman real estate market? 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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