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 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. This is the reason why I create a price-range analysis every quarter for my readers:
Lake Norman’s 2nd Quarter 2017 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 2nd quarter of 2017
- 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 2nd Quarter 2016 Price Range Chart:
- Our overall months of supply (absorption rate) of 5.57 would put our Lake Norman real estate market in a seller’s market. Note that a year ago we had 6.43 months of supply so at this same time last year Lake Norman was slightly in a buyer’s market.
- Our current inventory of 947 single family homes is slightly less than last year’s 987 while our number of homes sold is 11% HIGHER than the 2nd quarter of 2016.
- Our strongest price ranges were those up to $299,000 which is where we are seeing multiple offers on a regular basis. Look at their months of supply! From a low of only 1.35 months to a high of 2.25 indicates very fast sales, very low inventories…most definitely a seller’s market
- The $300,000 – $499,999 price ranges also fall in a strong buyer’s market but not quite the extremes of the lower price ranges.
- The $600,000s, $700,000s, and $1,250,000-$1,499,999 price ranges fall overall into a balanced market favoring neither buyers nor sellers.
- The rest of the price ranges are technically in a buyer’s market.
- Within those, our weakest price ranges were all price ranges at or above $1,500,000. Note the $1,500,000 numbers in particular compared to 2016. We only had 3 sales in 2017 which was a huge drop from last year’s 10. On the flip side, note that we sold 15 properties in the $1,250,000 – $1,499,999 this year and only 7 in 2016.
- Our luxury homes above $1 million represented 6.89% of our 2nd quarter 2107 while currently representing 17.9% of our active listings. This unbalance underscores the overall weakness in these price ranges.
- 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 2nd quarter has set several new monthly sales record. 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 $750,000 – $850,000 price range you might want to look for opportunities in the 800,000’s where there are 51.4% fewer sales with only 32% fewer active listings. The higher the months of supply in a price range the more it favors the buyer. There is only a 6.8 month supply of homes for sale in the $700,000’s price range where there is an 9.47 month supply of active listings in the $800,000’s.
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, an $1,500,000 listing price, it would clearly be prudent to price your home slightly under $1,500,000 where there was 5 times the number of sales and just about an equal number of active listings. (6.07 months of supply compared to 24.5. Wow!)
One final caveat: Our Lake Norman real estate market has been hot all spring and into summer. In late summer our sales activity usually begins our seasonal slowdown so you may need to adjust your process to our seasonal patterns of activity.
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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