Plaza Midwood Neighborhood Real Estate Update
Data Gathered from the CMLS: 4/1/2010 - 4/30/2010
Foreclosure data gathered from Realist
April proved to be a great month for real estate in the Plaza Midwood neighborhood of Charlotte. In 2009, only four single family homes sold in the entire month of April at an average sales price of $304,125 at an average of $165 per square foot. During April 2010, home sales tripled with 12 recorded closings and an average sales price of $270,834 at an average price per square foot at $156. There's a lot more behind those numbers than a $9.00 per square foot drop in value.
Last month, only two of the closed sales were marked as being a bank-owned foreclosed property (known as a REO). Both of the REO properties were in need of repair with 2819 Attaberry Drive being 3/4 incomplete (partially finished home). That property was listed for sale at $38,000 and closed for $46,857. The other REO property, 2200 Thurmond Place, was a 3 Bedroom, 1 Bath 1,072 sq. ft. partial brick ranch home. It was listed for sale for 207 Days on Market before being sent to auction at closing for $89,250.
In most other neighborhoods throughout Charlotte, I would not ordinarily not eliminate the REO sales from the stats as I firmly believe that the distressed sales have become the market. However, in the case of Plaza Midwood, if you eliminate the two REO sales (one being an incomplete property), the stats improve to an average sales price of $311,390 at a average price per square foot of $163.
Half of the buyers that purchased in the Plaza Midwood neighborhood asked the seller for closing cost assistance of $4,860. Given the age of many of the homes in the neighborhood, only one buyer utilized FHA financing while three paid in cash and the rest utilized a conventional loan.
Sellers received 89% of their original asking price in April '10, down slightly from the 91% from April '09. With the foreclosed sales removed from that equation, the percentage remained the same due to the offset from one property selling for more than asking and other selling for much less.
29 Single Family homes were added to the inventory in the Plaza Midwood neighborhood in April, bringing the total inventory to 115 as of the date of this posting. Only two of the active listings are bank-owned foreclosures and six are listed as short sales.
Over the last year, home values in the Plaza Midwood neighborhood in Charlotte have stabilized. While prices are down from the 2007 high of $204.50, year-over-year prices only dropped a couple dollars.
With over a ten month supply of homes for sale in the Plaza-Midwood neighborhood and 184 pre-foreclosures in the 28205 zip code, I would anticipate prices falling by a slight margin throughout the summer. While 184 pre-foreclosures sounds like a large figure (and it is), the 28205 zip code encompasses far more than just the Plaza-Midwood neighborhood.
The actual Plaza-Midwood neighborhood is holding reasonably stable so any further loss of value short-term would be the result of an overabundance of inventory or the surrounding neighborhoods experiencing trouble. Shadow inventory isn't much of an issue in Plaza Midwood as 2219 The Plz is the only REO that's pending a listing since the beginning of the year.
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