2016 Lake Norman Real Estate Market Review
Lake Norman Homes
The Lake Norman real estate market saw its 7th straight year of increased total closed home sales, up 4.9% from 2015 to 1777 Lake Norman homes sold in 2016. And the highest number of closed home sales since 2006. To say that the Lake Norman real estate market is recovering is an understatement. We are seeing multiple offers and offers over list price in a lot of Lake Norman communities. However, some pockets of Lake Norman are still in a buyers market.
The median sales price saw a large increase from 2015 ($20,050), an indication that the market has fully recovered from the crash in 2008. It is also the highest median sales price on record. I, personally, do not put much stock in the median sales price as it is just what the middle home sold (#889 in this years total of 1777 homes sold) for and does not take into account location, size, #beds/baths, etc.
The average sales price saw a significant increase from 2015 (6%) and is at the highest average sales price on record. This is the amount that we predicted for Lake Norman at the beginning of 2016. This is an indication that the market has recovered and is inline with what a strong real estate market should be doing year over year.
The average days on the market decreased 4.5% from 2015 and again reached the lowest level since 2009. Another strong indication that the market is at full recovery. We are currently in a sellers market in many Lake Norman neighborhoods but overall we are in a balanced market.
The average price per square foot saw a slight increase (4.6%) from 2015 and maintained its highest level since 2008. This is another indication of a healthy real estate market.
Lake Norman home owners also saw an slight increase (2.6%) in the average % of sales price to list price, with homes selling for 97% of the original list price. This was the highest % of original price since 2006.
In review, almost every statistical indicator for the Lake Norman real estate market saw an increase from 2015 with many maintaining the highest they’ve been since before the market crashed in 2008. I expect to see similar yet smaller gains in 2017. Homeowners may see some other changes in the real estate landscape as well. Millennials have been buying more homes and signs point to an upswing in new construction homes. Interest rates have stayed low, average sales prices have gone up and foreclosure inventories are down. If trends continue as expected, the market will continue to gain momentum through 2017.