Buyers' market or sellers' market in the small towns to the south of Charlotte NC?
The media would lead you to believe that sellers don't have a prayer in this real estate market. As I was reviewing the 2008 real estate market in Matthews NC, Mint Hill NC and the small towns of Union County NC recently, I took a look at absorption rate in each area. I found some surprises in the numbers. You may be surprised too.
First, some background. What is absorption rate and how do you define a buyers' market and a sellers' market? Absorption rate is a way to calculate how much inventory of homes is selling each month and how many months supply exists in the current market. Number of sales in the last six months divided by 6 months equals sales per month. Dividing sales per month into current active listings tells you how many months supply is available in a town, a neighborhood or a price range.
Buyers' market or sellers' market? The generally accepted definition of a buyers' market is more than seven months of supply. A balanced market has from five to seven months of inventory and a sellers' market has less than five months of inventory.
Who were the winners and losers in this analysis? The buyers or the sellers? It depends. The buyers definitely have an advantage over the sellers but in some towns and in some price ranges, the outlook for sellers is not so dire.
Here is a summary of some of the results. Each town's absorption rate is listed below the summary where you can click to get a detailed report of 2008 real estate activity.
Towns with a balanced market during the last six months:
- Matthews NC 6 month supply
- Mint Hill NC 7 month supply
- Stallings NC 6 month supply
- Indian Trail NC 7 month supply
Best price range for sellers during the last six months:
- $100,000 to $300,000 in Matthews NC 4 month supply
- $100,000 to $300,000 in Mint Hill NC 4 month supply
- $100,000 to $300,000 in Stallings NC 5 month supply
- under $200,000 in Lake Park NC 2 month supply
Worst price range for sellers during the last six months:
- over $500,000 in Weddington NC 22 month supply
- over $500,000 in Waxhaw NC 24 month supply
- $300,000 to $500,000 in Marvin NC 21 month supply
Learn more about the 2008 real estate market in Charlotte NC area small towns:
Matthews NC (6 month supply)
Mint Hill NC (7 month supply)
Indian Trail NC (7.8 month supply)
Stallings NC (6.3 month supply)
Weddington NC (18.8 month supply)
Waxhaw NC (10.2 month supply)
Wesley Chapel NC (14.7 month supply)
Marvin NC (17.7 month supply)
Monroe NC (12.4 month supply)
Lake Park NC (9.2 month supply)
Want to know more about buying or selling real estate in Charlotte NC area small towns?
About the author: Carol Fox of Allen Tate Realtors is a veteran agent who has been selling real estate in the Charlotte NC area for over twenty years.
Copyright 2009. Carol Fox. All rights reserved. "Buyers' Market or Sellers' Market in Charlotte NC Small Towns?"