Housing Question Mark

 We are truly being bombarded in the local and national news with stories about the crisis in the US housing market.  With so much information gathered by using a variety of sources of information, it can be difficult to know exactly how this news pertains to our local Lake Norman housing market.

Using the data from the Charlotte Regional Multiple Listing Service for the Lake Norman area (13 1-5) as I do every quarter, I have provided you with an overall summary of the 4th quarter of 2008 as well as a detailed breakdown by price range:

Lake Norman 4th Quarter 2008 Housing Sales Overview

Lake Norman 4th Quarter Sales Analysis

This chart gives a simple overview of the 4th quarter of 2008 versus 2007:

  • The number of active listings increased 16%  while our number of sales of single family homes dropped by 35%.  This resulted in an increase in the number of months of inventory of active lisitngs from 18.8 to 25.1.  (A balanced market is 6-8 months of supply).
  • The average price of homes sold in the 4th quarter dropped 15%  while the average days these homes were on the market before selling went up 39%.
  • The number of contingent, conditional and pending sales, which are a barometer of our future month's closings, dropped by nearly 50% from last year. 

 

Inventory Up + Sales Down = worsening Lake Norman real estate market

 

 Lake Norman 4th Quarter Sales Analysis by Price Range  

Lake Norman 4th Quarter Sales Analysis by price change

Every quarter I do a real estate sales analysis by price range including all of the Lake Norman area.  This provides you with the ability to look as trends within individual price ranges in which you are looking to buy or sell a home in the Lake Norman area. 

Findings:

  • Sales of homes up to $200,000 remain strong
  • Only 33 homes sold over $600,000 yet there are 615 homes for sale priced above $600,000.  At this rate it would take us almost 5 years to sell out of homes in our higher price ranges.

As a buyer, this chart will show you where the market is the weakest and may give you reason to make a lower offer.  As a seller, you can look at the changes by price range and if you are right on the cusp of, for example, a $600,000 listing price, it would clearly be very important to price your home in the $500,000's where you may tap twice as many prospective buyers than if you priced it in the $600,000's. 

RELATED ARTICLES

Lake Norman Real Estate's December 2008 Sales Analysis

Lake Norman Real Estate's 3rd Quarter 2008 Sales Analysis 

Lake Norman Real Estate: "The Point"; A Case Study

Lake Norman Water Front Home Sales Update 9/15/08

The Truth About Lake Norman Real Estate Market: A Case Study of "The Farms" 

 
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5 Comments on Lake Norman Real Estate 4th Quarter Sales Analysis

JAN
11
2009
1,262,395 Points 2 Featured Posts Outside Blog Hit Router

Hello

It is a great time to buy a home

Sincerely

Tom Braatz
5:47pm • #1
1,585,526 Points 430 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Diane - you have done a very thorough analysis on the Lake Norman real estate market, which seems to be in the same situation as many other communities in terms of sales, inventories, and prices. Looking at the data lke this is so important since things can vary so much depending on what segment of the market you are looking at, and what type of data. Great information for buyers and sellers, even if it is not particularly encouraging.

Jeff
6:12pm • #2
315,754 Points 39 Featured Posts Outside Blog

Your numbers are pretty bleak for sellers but awesome for buyers. Hopefully you'll see and increase of buyer activity soon.
8:06pm • #3
569,437 Points 1 Featured Post Localism Sponsor Outside Blog Attended Rain Camp

I am always interested in other markets and how they are doing. Recently I have seen our market show signs of improvements I hope it continues.
9:36pm • #4
JAN
12
2009
284,851 Points 37 Featured Posts Localism Sponsor Outside Blog

Tom:  I think so...but we are still going down.

Jeff:  I reallly like doing these by price range even though it takes a lot of time...interesting to see how our high end is struggling!

Monika: I hope so too!

Terry:  Yes, I really like reading other market reports too.  It helps us gain perspective on the whole country not just our niche.
4:12pm • #5


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