Lake Norman Real Estate and NC Homes for Sale

As I was preparing this summary of Lake Norman’s October housing market my curiosity got the better of me.  While it is important to compare our sales to October 2007 we are now well ove a year in our Lake Norman real estate downturn and so I realized it is very important to now look at our sales in context of the past 4 years to get a grasp of the entire picture of our Lake Norman housing market.

So, first I did my usual monthly analysis:

                       Lake Norma Real Estate Market Statistics for October 2008

Briefly, you can see that sales dropped 48% versus October 2007, our months of supply of active listings were down from our high of about 1789, but relatively speaking are the highest yet at 24.1 months due to the drop in the number of home sales.  Okay, so our Lake Norman home sales are still trending downward and our inventory is still exceptionally high.  Not surprising news to anyone!

Knowing we are going into our slowest time of year, I decided to take a look at the historical data by month since 2004 so we can get a better idea of where we have come from to help us determine where we are and future trends for the Lake Norman residential real estate market.  Here is what I found:

Lake Norman Homes Sales by Month; 2004 - 2008

 As you can see, Lake Norman real estate peaked in 2005 and started its downward trend in July of 2006.  The most significant decline has been this past year when we have dropped to less than half of the the previous years’ sales each month.  Traditionally we would expect to see the usual holiday slowdown with an uptick in sales next March. 

Considering the number of active listings we currently have in the Lake Norman real estate market, these next few months are going to be tough even if we meet the sales numbers of last year.  I expect to continue to see prices drop until our inventory decreases to about half of what it is today.  Whether that is in 6 months or several years is very hard to predict until we get a better handle on the global economic crisis.

FYI, my blog’s server has been down for almost 2 weeks and is still not functioning properly.  I apologize for the interruption and can’t wait to get back to writing on a regular basis!

One of the disclosures our folksy Lake Norman real estate agent neglected to mention to my husband and I when we moved here in 2005 was that Duke Energy’s McGuire Nuclear Station (yes, a full-blown nuclear power plant) was just 9 miles away from our home…opps!

While the presence of a nuclear power plant on Lake Norman doesn’t seem to bother most home buyers, I do think it is important for them to know that it exists and be able to appease any concerns they may have.  Every year Duke Energy sends out calendars to Lake Norman home owners with basic information about the plant and emergency exit plans.

On November 19, 2008 Duke Energy is holding a “Newcomer’s Drop-In” at  the Duke Energy’s Energy Explorium on Lake Norman from 6p.m. to 8p.m.  This will be a great opportunity for Lake Norman residents to attend a brief presentation about the McGuire Nuclear Station and have any questions answered as well.  Children are welcome!

A the EnergyExplorium, you can:

• Take a virtual tour of the McGuire Nuclear Station
• Play interactive games and learn to use energy wisely
• Convert your own energy into enough electricity to power a TV!
• Watch a movie about Lake Norman and the community
• Walk a natural trail along the shore of Lake Norman and experience the wonders of the Piedmont’s environment.

If you plan to attend the Newcomer’s Drop-in you will need to RSVP by November 12th at : 704.875.5600.

The EnergyExplorium is open to visitors Monday - Friday: 9a.m. - 5 p.m. and is located at 13339 Hagers Ferry Rd in Huntersville.

RELATED ARTICLES

Lake Norman Relocation Resources

The other day I asked my broker/owner of RE/MAX at the Lake exactly what was selling right now.  Her answer?  “Bargains."  Getting her insight based upon the business of 70 agents further underscored my own feeling that the Lake Norman real estate market is much weaker than most sellers and even local Realtors grasp.

Important Signals from the Current Lake Norman Housing Market:

There are too many active listings in the Lake Norman area:  We currently have 1623 active listings for sale in the Lake Norman area in our MLS.  Based upon the current rate of sales this equals a 20.8 month of supply on homes for sale…we should have 6-8 months of listings.

Pending and recent sold numbers are still falling:  This past month we sold 78 homes and there are 77 sales pending.  (See links below to my market reports)

Foreclosures and auction sales are up:  Builders are holding auctions for entire group of homes.  Realtors are bundling foreclosures and holding auctions.  There are now a good number of bank-owned homes for sale as well as listings in “pre-foreclosure” status.

Second appraisals are being required by lenders before closing:  Just as I experienced in California in the early 1990’s recession, lenders are sometimes getting a second appraisal right before closing because of concern related to the declining home values.

The number of vacant homes is increasing: Whether new homes or resale, many homes currently on the market are vacant. 

Buyer incentives are extensive: The best example is an event held last weekend by Lake Norman Signature Homes and The Point:  "Tax Free Weekend” which offered a “Real Estate Stimulus Package", Builders to pay first year of buyer’s property taxes and 1/2 commission paid to Realtor upfront for all new custom construction contracts. 

Builders are in survival mode:  New permits have dropped significantly.  Most builders are not building new homes unless they have a buyer in place.  Some builders here in Lake Norman have gone out of business entirely while others are hanging on hoping to survive. 

Lake Norman Realtors are leaving the business:  This is very common during a down market but I am hearing about more and more Realtors either leaving the business or getting part-time jobs.  This kind of market is not for the weak of heart!

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LAKE NORMAN RESIDENTIAL REAL ESTATE HOT SHEET

October 24, 2008 

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If you are looking for a newer Mooresville home in a well-maintained neighborhood on at least .5 acres and within walking distance to Lake Norman you would normally be looking at prices starting in the high $300,000’s on up to $10 million.  That is what makes the Harbor Landing community so remarkable!

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