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Lake Norman Real Estate: June Gloom in North Carolina?

By
Real Estate Broker/Owner with LKN Realty, LLC 242267

 Foggy Morning

 

So, it's 100 degrees outside today, June 10th, in the greater Lake Norman area.  A great day to stay inside and crunch some housing numbers.  As I was thinking of the rather gloomy U.S. economy, it reminded me of the term we used in LA for our June weather due to the daily morning fog: "June Gloom".  But is the real estate market in Lake Norman really gloomy?

It's been about 4 weeks since my last update on our Lake Norman housing market.  While I always find it interesting to look at and play with the latest numbers from our Charlotte Regional Multiple Listing Service, this time I was very curious to see what I could learn because recently there have been some singular but promising events:

  • I listed a home in the high $400,000's, a traditionally weak price range and we had an accepted offer in less than 3 weeks!
  • The highest priced homes in Lake Norman are selling again; the most recent @ $10,500,000.
  • I am reading blog posts on ActiveRain from agents in some of the hardest hit areas of our country talking about signs of improvement in their markets.

Are these aberrations or in fact the first signs of positive change?

The first report I pulled was the "hot sheet" for the past two weeks which I compared to prior  "hot sheets" from this year.  Our "hot sheets" give us a 2-week summary of new listings, listings that are back on the market, price changes, pending, contingent, conditional sales and number of closed sales.

  • New Listings:   At 149 this is the second lowest number this entire spring
  • Back On Market:   At 55 this is the highest number I have for the spring
  • Price Changes:   At 243 this is also the highest number so far this year
  • Pendings:   At 47 this is in the middle of a range of 37 to 52
  • Contingent & Conditional:   At a combined total of 19 this again falls in the middle range for this season.

 

 Then I pulled the numbers for the entire Lake Norman area and compared them to prior reports:

  6/10/08 5/19/08 4/1/08 1/01/08 10/1/07 7/1/07
Active 1756 1735 1668 1259 1351 1300
Contingent 13 16 15 17 20 23
Conditional 32 33 34 30 34 42
Pending 102 105 115 106 154 170
 

 

Finally, I compared our listings sold or closed in the past 30 days to the same period in 2007:

2008:  88 properties sold

2007:  166 properties sold

% Change  = -47% drop in number of housing units sold

The Good News:

  • The number of new listings coming on the market is dropping
  • The number of price changes is increasing showing that sellers are getting more realistic
  • The overall Lake Norman housing market is not getting worse but seems to have stabilized

 

The Bad News:

  • The number of properties sold is down 47% versus the same period of 2007
  • Our inventory is still very high at about 20 months of supply on hand
  • Our average days on the market has gone up
  • By June of 2007 the market had started to drop so we are comparing 2008 to an already weakening period of 2007

 

All and all, our housing market seems to have stabilized.  Now we wait and watch for positive signs indicating that the worst is behind us!

 

 

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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

It's still pretty slow around here.  Buyers want to buy but loans are getting harder and harder to get.

 

Jun 10, 2008 11:33 AM
William Johnson
Retired - La Jolla, CA
Retired

Hi Diane, That is a picture we in california see many mornings but I know it was not taken here because we don't have nice trees like that. Ours a different. :-)

Great report and I love that box you used. Even I could understand it and it looked cool in the green border. Is that a template? Very neat looking.

There are hopeful signs in that the Actives are down and the others are up. The bad part is dividing by the number of people doing business and it might be frightful as it is here.

Jun 10, 2008 01:19 PM
Bonnie & Terry Westbrook
Westbrook Realty - Ada, MI
Grand Rapids MI Real Estate

Eerie photo Diane, but perfectly illustrates your article. We are seeing a little tiny light at the end of the tunnel, too.  Price changes and falling inventory are good, very good. Let's hope for more signs of recovery.

Jun 10, 2008 01:33 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Diane, I always love seeing your area, I think (hope) the worst has passed...for your area and All areas.

Jun 10, 2008 04:00 PM
Susie Blackmon
Ocala, FL
Ocala, Horses, Western Wear, Horse Farms, Marketing

Our inventory has been increasing, and I too see sellers being a bit more realistic.  While I am forever the optimist, our recovery will probably be more pronounced next spring/summer.  Enjoyed your report.

Jun 11, 2008 07:53 PM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Lenn: It really is slow here too as you can see.  When our number of sales is but half of last years it is clear buyers are either waiting or having loan issues as you say.

William:  It is frightful here too but with a few hot spots.  I made the chart on my RSS Pieces blog site and just copied it here.  It's a fun tool to use!  Thanks for your compliments!

Bonnie: Yes, it will be great when I can report lower inventories and higher sales!

Carole: I hope so too...I'm thinking we may just maintain this current level for the rest of the year and hope for some signs of recovery next spring.

Susie: I totally agree!

Jun 12, 2008 12:42 AM