September 15, 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 a 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 dropped by almost 20%. Our seasonal trends seem to be continuing with decreased activity in the fall and winter. One of the most important parts to our Lake Norman housing recovery is a decline is inventory so this is a good sign.
The number of properties that came back-on-the-market, most likely due to cancelled contracts, soared to their highest number this year. Lake Norman is continuing to experience the challenges related to obtaining home loans which probably played a big factor in having so many cancelled contracts in one two-week period.
The number of price changes dropped to their lowest number since April. Lower prices are another key component to the Lake Norman housing recovery.
Pending home sales remained stable. I actually thought we would see a decline in pending sales but unfortunately, we have not been seeing all of these sales convert to closed sales so from this chart I would predict our closed sales for September will be about equal to August and down from the July high for the year.
The number of closed sales in the past two weeks dropped 44% compared to the first two weeks in August. Add these to a good portion of the pending sales and we once again end up with about 60 closed sales in September which is about equal to August.
Overall, the Lake Norman real estate market looks to be leveling off at a rate of sales that is far below our peak years. However, if we can get our prices down far enough to entice buyers and if our level of inventory of active listings keep dropping we are certainly heading in the right direction. I have been showing a lot of property recently and there is no doubt that sellers are dropping prices and adding additional incentives to attract buyers. Bargains are attracting buyers to get off of the fence. Once the momentum shifts and buyers feel they better buy before the market turns around, I think the Lake Norman housing market will stabilize.