*Compiled from the Carolina Multiple Listing Service’s data. Note that the numbers in this chart are generated by a technology expert I hired and not by me. The mapped perimeter of our Lake Norman area that he used for this chart’s numbers is slightly different from mine.
Lake Norman’s overall real estate market in the 2nd quarter of this year continued our strong pace that began in January, (With the exception of June.) However, there were some fascinating sub-trends within price-ranges in the past 3 months as you can see in above chart. By far the best way to truly understand our hot and cold niches is by analyzing our single family home sales by price-range which is why I create this chart each quarter.
If you are a home buyer or seller in the Lake Norman area it matters most what is happening in YOUR price-range. Yes, it is important to know about the global, national, and 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 $500,000 price range, you are going to have an entirely different experience than someone in the $600,000’s. And, if you considering a broader range of prices, this chart can help you develop a more effective strategy by narrowing your search based upon actual strengths and weaknesses within our Lake Norman price-ranges.
The single most important numbers in this chart are those in the last column which provides the month’s of supply for each price range. This means how many months that it would take us to run out of listings for sale with today’s number of active listings and at the current rate of sales. Keeping in mind that economists define a 6-months supply of active listings a balanced market and anything below that as a seller’s market and above 6 months as a buyer’s market, you can quickly determine this past quarter’s strengths and weaknesses. Overall, Lake Norman is now down to 3.79 months of supply compared to our first quarter’s 6.28 months of supply of active listings and last year’s 4.18. Lake Norman began 2019 in pretty much of a balanced market and now we are very much in a seller’s market. That said, there are interesting variations within some price-ranges.
How to read this report:
- First choose a price-range.
- Moving right, the next column provides the actual number of listings sold in this price-range in the 2nd quarter of 2019.
- This is followed by the percentage this price-range represents of the total number of listings sold in all of Lake Norman in the second quarter.
- 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 and to put the chart above in perspective, compare this last year’s 2nd Quarter 2018 Price Range Chart:
Insight and Findings:
- This past quarter there were clearly defined groups of very strong, moderately strong and weaker sales.
- If you look at the last column, sales up to $599,999 were all under our overall average of 3.79. This niche represented 72.89% of Lake Norman’s entire real estate market in the second quarter. All of these price ranges were in a very strong sellers’ market .
- The second strongest niche is $600,000 – $1,249,999. All of the price ranges in this group have very close to the same months of supply and all fall into a sellers’ market as well.
- Finally we have our weakest price-range niche which includes all of our luxury homes over $1,250,000 with the notable exception of the $2,000,000. All of our luxury market is still in a buyers’ market but it is fascinating to see such strong sales in the $2 million price range!
- 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!
- Our overall months of supply (absorption rate) of 3.79 is down from 6.28 last month and is also slightly below the 2nd quarter of 2018. We are very much in a sellers’ market!
- Our current inventory of 770 single family homes is slightly lower than last year’s 2nd quarter’s 811
- If you would like to learn more details about our current market, see my: Lake Norman Real Estate’s June 2019 Market Report. Note my number of active listings was only 753.
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. For example, if you fall in the $550,000 – $650,000 price range you might want to look for opportunities in the 600,000’s where there were 47 fewer sales but only 28 fewer active listings. You will face less competition and have just about the same number of listings to choose from. Another great example is in the luxury price ranges. The $1,250,000 – $1,499,999 has 50 active listings and a 10.94 months of supply while in the price range just under $1,249,999 there are only 35 homes for sale and it is in a sellers’ market with only 5.57 months of supply so you would be better off looking just above $1,250,00.
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 $600,000 listing price, it would be best to price your home in the high $500,000’s (rather than the low $600,000’s) where there were about twice as many sales/buyers looking to buy.
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: email@example.com. 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.
OTHER ARTICLES of INTEREST