All data is from the Canopy/Carolina Multiple Listing Service.
We wondered if January’s strong market indicated what we could expect for 2020, and February proved to follow in stride with very positive numbers. For this month’s market report, we’ve added “coming soon” and “cumulative days on market” (CDOM). “Coming Soon” indicates properties which will be active in the next 21 days or less, but are not quite ready for the market. CDOM is the cumulative total days from the start of the listing to the contract date. The difference between days on market (DOM) and CDOM, is that CDOM accounts for the entire time a property has been on the market, regardless of firms it may have been listed with. DOM only accounts for the time on the market with one firm/agent. Thus, CDOM can offer truer market data in terms of real time on the market.
February 2020 was a record-breaker for the past decade, only surpassed by February 2007 with 126 closed sales compared to 123 currently, as shown in the chart below. The number of active listings decreased by 27%, a significant decline. Available homes for purchase will remain problematic and likely continue to decline for our year over year outlook throughout 2020. The lack of inventory could be an indication of why our average listing price yielded a 12% increase year over year. This improvement was also noted in closed sales, with a 9% increase in the average sales price year over year.
Total contracts (show and no show) combined rose by 7% from last February, with a total of 341 properties that went under contract for the month. With only 514 active single-family homes, our months’ supply of inventory continues to fall and is now under 2 months. This is less than our CDOM and DOM, which shows 86 to 113 days on the market. This can easily be skewed if multiple properties remain on the market longer than average, causing the overall ratio to increase. Thus, if a seller’s home has been on the market longer than 2 to 3 months, a price adjustment may be a consideration.
Of the 123 sold single-family homes, 22% were new construction and 16% were waterfront. In addition, the average house age was 2003, and the average heated living area was 3073 square feet. The average price per square foot was $166.29, while the active listings average was $226.58 per square foot, over a $60/sq. ft. difference. The listing price to sales price ratio was 97%. Each home averaged 5.3 showings in February and had 14 showings on average before going under contract.
What will March 2020 bring to the Lake Norman market? We look forward to learning and sharing the results with you next month, as we are watching the market very closely. Although there is more uncertainty in the economy than we’ve recently seen, we know for certain that the Lake Norman real estate market is a good one. Whether you are a buyer or a seller our current market has something for you. With mortgage rates at all-time lows, buyers can buy more house with less money than they could last month. For sellers, the lack of inventory offers a prime time to sell, as we continue to see multiple offers on well-priced properties. Let us know if you’ve got questions on the Lake Norman market, we are happy to answer them.