October 23, 2009 Lake Norman Hot Sheet
Some would argue that an analysis of any two-week period in our Lake Norman real estate market is simply too short a time time frame to be meaningful. However, I have found that these monthly two-week reports, especially when put in context with the past 5 months, can actually provide us with a good pulse on trends in the Lake Norman housing market.
Today’s report is another great example of this
The above chart is a summary of today’s “Hot Sheet” from the Charlotte Multiple Listing Service for single family homes in all of Lake Norman (area 13). These numbers represent a real time snapshot of the past two week’s activity. As always, I have included the past 5 months so that you can put these numbers in perspective.
New listings , while low compared to most months, they did increase slightly compared to last month. We still have 1434 active listings in Lake Norman as of today which is about even with last month. One of the most important components of our Lake Norman housing recovery is a decline is inventory. We are on track to sell about 70 properties in October which translates to about 20 months of supply or almost 4 times the inventory for a balanced housing market.
The number of properties that came back-on-the-market, most likely due to cancelled contracts, dropped significantly! Despite the challenges of the current loan market, it looks as if Realtors and buyers are working better with the banks and perhaps buyers are more motivated to buy because they are purchasing a foreclosure or short sale.
The number of price changes also dropped significantly. This is a bit surprising considering that prices are dropping around Lake Norman. We will have to watch this trend.
Pending home sales are significantly lower. Since these are an indicator of future closed sales I predict our October sales will be about the same as September.
The number of closed sales in the past two weeks are back up when compared to last month but still below our summer highs.
Contingent and Conditional sales remain steady. Since these are properties that just went under contract, these may translate to a stronger November than last year.
What I have been observing lately with my own buyers is an increased willingness to consider buying this fall or winter rather than waiting for the “bottom” of the market. This is because they are seeing true “bargains” and understanding that there are some great opportunities to get into a home they could not have afforded several years ago. In the past two weeks I have negotiated a Lease/Purchase, two short sales and am working on a foreclosure. This is the reality of our Lake Norman housing market right now.
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