Lake Norman NC Map

 

With two full months of home sales in 2008 now in the books we can truly get a good feel for the actual strengths and weaknesses of the Lake Norman Housing market in the new year.

As you know, every quarter I do a Lake Norman Home Sales Analysis by price-range.  In between these I try to provide a snap shot of the current sales and inventory to provide you with a sense of trends in the overall Lake Norman real estate market.

Here are the statistics from January 1, 2008 to February 29, 2008:

 

Lake Norman Market Report 2008

 

              
               
Lake Norman   2008   Average$  DOM   2007 +/- Average$ +/- DOM  +/-

Active Lisitngs

   1460  $718,069 129              

Contingent 

   16   331,365 155              
Conditional    29   525,036 146              
Pending    113   473,260 102              
 Sold   134   414,453 111     200 33%

 $464,519

  11%  100  30%
                       
Months of Supply  21.8                  

*DOM = Days a listing has been on the market

 

Summary Analysis:

 

  • Our total home sales for the past two months were down 33% compared to the same period in 2007

 

  • The average price of a home sold in Lake Norman since Jan. 1 dropped 11% compared to the same period in 2007

 

  • The number of days a listing took to sell increased by 30%  (This DOES NOT include listings that were re-listed so this number is likely to be much higher)

 

  • The average price of our active listings is $718,069 compared to the average sales price of $414,453.  Clearly most home sales right now are in the lower price ranges!

 

We had 134 homes sales in the first two months of this year compared to 200 in the first two month of 2007.  While this in itself is not too serious, the biggest problem we are facing is the large amount of active listings compared to the rate of home sales. 

We have a whopping 1460 active listings right now. and more are coming on the market every day in anticpation of our normally robust spring housing market.  This means, at our current rate of sales (assuming, to be safe, that home sales numbers do not increase this spring) we have about 21.8 months of supply of homes for sale.  In a balanced housing market we should have between 6 to 8 months of supply of homes for sale in Lake Norman.

The Bottom Line:

  • We are significantly overstocked in the number of homes for sale in the entire Lake Norman area.
  • Our number of home sales, like the rest of the country, are down significantly.
  • With supply far outpacing demand, Lake Norman is still in a strong buyers markets.  I would anticipate more price reductions this spring, especially in the $400,000+ price ranges.
  • I think this spring we will not see our usual, season jump in sales so sellers need to continue to determine their listing prices based upon the very most recent sales of the very best, most similar properties to their own.
  • Homes are selling , buyers are buying but expect buyers to be very choosy both about condition and prices as they continue to be concerned about overpaying for a home in this market.

 

I've been through this kind of housing cycle before in the early 1990's in California.  It takes hard work, an excellent grasp of the current market conditions and the ability to identify even the smallest sign of changes and trends.  Most of all, it takes patience and the willingness to be flexible and listen to what the market is telling us.  While 2008 may not see much change, there is much hope that by 2009 we will be moving forward once again. 

Lake Norman and all of its communities are some of the most highly sought after in the country.  We will see a return to our strong market as soon as the US economy stabilizes.

Visit my blogsite  Lake Norman Real Estate for:

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This post has been included in North Carolina Real Estate News
Post is included in group: North Carolina Relocation Info

9 Comments on Lake Norman NC Housing Market Report: Year-to-Date 2008

MAR
02
2008
258,293 Points 6 Featured Posts Outside Blog

Diane, This is valuable information for both buyers & sellers. In your experience, where are most of the buyers coming from? Relocation? Retirement? or First Time buyers?

Ginger
1:15pm • #1
1,951,783 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
Same thing here.  Prices are staying fairly high, but number of sales is way down.
1:30pm • #2
1,330,263 Points 189 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Diane, I didn't know areas of the country had THAT much months of supply. That is incredible and will take a long time to whittle down.
1:53pm • #3
1,586,126 Points 430 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Diane - well done article with useful information for both buyers and sellers. i would say I have pretty much the same comments about our market, although I need to take a look at the statistics for February. We are seeing quite a bit more activity right at the moment.

Jeff 
5:14pm • #4
MAR
03
2008
178,659 Points 11 Featured Posts Outside Blog
Diane, what a great and comprehensive report.  Sellers in Lake Norman really need a realtor like you to help them sail through this process.  Great job!
1:12am • #5
559,078 Points 91 Featured Posts Outside Blog Attended Rain Camp

Diane,

Nice market report....It looks like you are following Lenns map program:)
6:25am • #6
247,590 Points 32 Featured Posts Outside Blog
Great market report ! Appears to be the same here...Prices way up, sales way down...
6:57am • #7
127,538 Points Localism Sponsor
Diane, inventory and downward price pressure seems to be the norm for the southeast except for little pockets here and there. I like to get a feel for what's happening in other areas of the country--who knows better than a local Realtor?Thank you for the very useful information.
7:10am • #8
MAR
04
2008
284,851 Points 37 Featured Posts Localism Sponsor Outside Blog

Ginger, for us by far and away the largest pool of buyers are relocating...both for jobs and for quality of life.  But right now a lot are waiting to see if prices come down!

Lenn:  I think our markets are similar.

Gary:  Our sales are down so much that it makes those numbers look even worse.  We have about 150 more listings than usual...just not enough buyers.

Jeff:  Our activity actually slowed in February so it will be very interesting to see how we do in March.

Neal:  I'm still working on my maps!

Melissa:  Thanks, I think it is the same almost everywhere!

John: It is nice to get a true feel for other markets in our country.
10:04am • #9


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