Still Waiting On That Great Foreclosure Deal In The Charlotte Region?

Still Waiting On That Great Foreclosure Deal

In The Charlotte Region?

I'm still getting lots of requests from prospective home buyers in the Charlotte region for a "great foreclosure deal." If you've been waiting on that great foreclosure deal in the Charlotte area, it would appear you'll be waiting for a while, as I've been saying for over a year now.

This week, Corelogic reported that completed foreclosures during the month of May 2014 were down by some 9.4% nationally versus May 2013. They also reported that approximately 660,000 homes were in some stage of foreclosure in May 2014. That's a staggering reduction of 37% over the same period just one year ago when there were over 1 million homes in some stage of foreclosure.

Charlotte region has also seen a real reduction in foreclosure acitivty in the couple of years. Here are the most recent statistics (source: 10K Research and Marketing) about foreclosure sales in the Charlotte region. You'll quickly see why there seem to be no "great foreclosure deals" out there to take advantage of.

• Months of inventory of foreclosure properties are down to 2.6 months in June 2014, a 10+% decrease over the same period last year. Compare this with 7.7 months of house inventory across the Charlotte region and you can see how little distressed property is for sale.

• Number of foreclosure homes for sale in the Charlotte region as of June 2014 was down to 475 properties, almost a 24% decrease over the same period in 3013. This is just over 2% of total number of homes for sale in the Charlotte region in June. Any wonder why it seems that there are no great foreclosure deals out there?

• Number of foreclosure homes sold in Charlotte in June 2014 dropped over 23% versus the past year to 1,966 homes. These 1,966 homes represent about 5.4% of total Charlotte closed homes in June 2014. Again, it's clear why there appear to be no great foreclosure deals.

• Number of pending sales of foreclosure homes in June 2014 were down almost 26% to 1,877 versus a year ago, representing just about 5% of total pending sales in Charlotte region in June 2014.

• Percent of original list price received by foreclosure homes in Charlotte in June 2014 was 92.2% on a median basis. Compare this with the 95.8% received by all sold properties in the Charlotte region and you can clearly see that foreclosure sales are not selling at deep discounts and that there are few great bargains.

So if you've been wondering where all the great foreclosure deals have gone, wonder no more. If you've been waiting on a great foreclosure deal, you can expect a wait. And when one comes along, be prepared to act quickly and don't expect the bank to sell you that foreclosure home at 50 cents on the dollar as so many buyers seem to think they can do. Offer that low price and you'll be beaten to the finish line by a more realistic buyer who understands Charlotte's foreclosure market today.

The real estate is all about supply and demand... as supply diminishes and demand increases, sale prices of foreclosure properties will also go up. There won't be many big bargains out there.

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This update on distressed property sales in the Charlotte region is brought to you by Nina Hollander and Carolinas Realty Partners, Coldwell Banker, your Charlotte metro area residential real estate experts.

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