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 4th Quarter 2016 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 2016
- 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 4th Quarter 2015 Price Range Chart
- Our overall months of supply (absorption rate) of 5.53 puts our Lake Norman real estate market leaning towards a seller’s market. Note that a year ago we had 7.16 months of supply so at that time Lake Norman was in a buyer’s market.
- Our current inventory of 701 single family homes is actually slightly higher than last year’s while our number of homes sold is a whopping 32.5% HIGHER than the 4th quarter of 2015.
- Our strongest price ranges were those up to $399,000 which is typical but look at their months of supply! From a low of only .7 months to a high of 3.47 indicates very fast sales, very low inventories and even multiple offers in these price ranges.
- The next strongest group of price ranges has expanded significantly since last year. If we look strictly at months of supply, I would include all price ranges from $400,000 – $799,999 and the $1,250,000-$1,499,999. These are all technically in a buyer’s or balanced market favoring neither the buyer nor the seller. If you look at the 2015 chart above and compare you can see that our trade-up price ranges have improved significantly and even or luxury market has shown notable improvement.
- At the same time, our weakest price ranges were $1,500,000 – $2,999,999 which still remain very much in a buyer’s market but have still shown marked improvement over 2015 as well.
- Our luxury homes above $1 million represented 6.30% of our 4th quarter sales while currently representing 18.26% of our active listings.
- Lake Norman’s overall Months of Supply of active listings at the end of our 4th quarter 2016 was 5.53 compared to the 2015’s 7.16. Clearly our low inventory and higher sales have now put us leaning towards a seller’s market. Our Lake Norman real estate market is currently relatively active so it will be interesting to see our 1st quarter 2017 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!
- This year’s 4th quarter continued the momentum of the 3rd quarter to end 2016 with a bang. And, 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 $350,000 – $450,000 price range you might want to look for opportunities in the 400,000’s where there are 35.5% fewer sales with an almost equal number of active listings. 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 $800,000 listing price, it would clearly be prudent to price your home in the $700,000’s where there was 3 times the number of sales and and only 12 more competing active listings.
One final caveat: Our Lake Norman real estate market was more active than usual for the 4th quarter but we are now in our slowest month of the year so you will need to adjust your process to our current patterns of activity as enter our hot spring season.
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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