Our 3rd Quarter 2018 price range analysis is fascinating because it reveals strengths and weakness not by groupings like luxury homes, trade-up or first-time buyer as is normally the case but rather by price ranges within these groupings. If you compare this chart to the second chart below for the same quarter in 2017 you will see further evidence of these rather quirky numbers.
Why do I create a price-range analysis every quarter for my readers and clients? Because 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, national, and 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. And, if you considering a broader range of prices, this chart can help you develop of more effective strategy by narrowing your search based upon actual strengths and weaknesses within our Lake Norman price ranges.
Lake Norman’s 3rd 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 3rd 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 3rd Quarter 2017 Price Range Chart:
Insight and Findings:
- Our overall months of supply (absorption rate) of 4.38 affirms that our Lake Norman real estate market was in a seller’s market in the 3rd quarter however note that our sales dropped significantly in September so today we are trending into a buyers market.
- Our current inventory of 755 single family homes is 5.4% less than last year’s 798 while our number of homes sold is 1% greater than the 3rd quarter of 2017. Low inventory levels of active listings in almost all price ranges continue to plague our market.
- Instead of being able to group the highest and weakest performing price ranges, this quarter it is more meaningful to highlights specific price ranges.
- That said, we can say that all price ranges up to $900,000 were technically in a seller’s market but some more so than others.
- Unlike last quarter’s impressive luxury home numbers, this quarter the only luxury standout price range was the $1000,000-$1,249,99 which is very much in a seller’s market at 4.17 months of supply. All other high-end price ranges fell back into a buyer’s market.
- The most improved price ranges when compared to our 3rd quarter 2017 AND last quarter’s were the $100,000’s, $400,000’s, $700,000’s and the $1,000,000 – $1,249,999’s. Each of these price ranges is in a different segment of our market: The entry level, middle level, trade-up and luxury. Interesting!
- Our weakest price ranges when we compare them to last year’s were the $900,000’s and all price ranges above $1,500,000.
- If you look just at our months of supply in the far right column, there are quite a few small ups and downs as you look down the chart. These become more prominent starting in the $900,000’s.
- 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 months that are traditionally towards the end of our strongest seasons of our Lake Norman home sales with a dip already in our September closed sales this year.
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. For example, if you fall in the $950,000 – $1,050,000 price range you might want to look for opportunities in the 900,000’s where there were 6 fewer sales but 6 more active listings. Another great example is in the luxury price ranges. The $1,000,000- $1,249,999 were hot so if you are able to move up in price you will find more listings, less competition and probably more motivated sellers . The higher the months of supply in a price range the more it favors the buyer.
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 actually best to price your home in the low $1.000,000’s (rather than the high $900,000’s) where there are fewer homes for sale and more recent sales.
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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