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 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:
Lake Norman’s 2nd Quarter 2015 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 2nd quarter of 2015
- 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).
Compare this to the 2nd quarter 2015 price range analysis:
- Our overall months of supply (absorption rate) of 6.43 puts our Lake Norman real estate market squarely in a balanced market; favoring neither buyer nor seller. Note that a year ago we had an almost identical numbers of 6.23 months of inventory!
- Our current inventory of 987 single family homes is actually slightly higher than last year’s but our number of home sold is almost identical.
- Our strongest price ranges were those up to $499,000 which is typical but look at their months of supply! From a low of only 1.75 to a high of 6.04 indicates very fast sales, very low inventories and even multiple offers in these price ranges.
- There was some real strengthening in our “trade-up” price ranges up to $799,000 compared to last year’s. Homes in the $500,000’s, and $700,000’s in particular showed marked improvements.
- There was an interesting flipflop in our $1 million+ price ranges. Last year the $1 million to $1.5 million sales were fairly strong and anything above that was VERY slow. This year, however, we were slightly weaker in those price ranges but significantly stronger in the $1,500,000- $2,000,000.
- Our luxury homes above $1 million represented only 6.92% of our 2nd quarter sales and currently represent 16.35% of our active listings.
- Lake Norman’s overall Months of Supply of active listings at the end of our 2nd quarter 2016 was 6.43 compared to the 2015’s 6.23. Clearly our low inventory and higher sales have already created a balanced market so far in 2016 and our Lake Norman market remains very active so it will be interesting to see our July and August numbers.
- 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!
- Lake Norman’s second quarter includes several of our traditionally hottest months of the year. In fact, June was our third highest month for total number of homes sold since 2005.
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 $450,000 – $550,000 price range you might want to look for opportunities in the 500,000’s where there are 47% fewer sales with an almost equal number of active listings.
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 $800,000’s where there was 31% more sales and 20% fewer competing active listings.
One final caveat: Our Lake Norman real estate market is HOT right now so while these numbers are a good reflection of the past 3 months, you will need to adjust your process to our intensity of activity!
Questions about this report or the overall Lake Norman real estate market? 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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