Why is it so hard to find a great foreclosure "deal" in Charlotte? Asking this question reminds me of the old Peter, Paul, and Mary song "Where Have All The Flowers Gone?" That's the operative question for the Charlotte, North Carolina metro market -- where have all the foreclosures gone and why can't I find a good deal?
From the chart below, you can see that nationally, the percentage of distressed property sales has dropped in the past three years from 35% to 11%. The inventory simply isn't there. And keep in mind that real estate is all about supply and demand, so the lenders know if there's less supply and more demand they don't need to discount their asking prices for foreclosed/short sale homes the way they did just three years ago. Also, keep in mind that short sale prices are established to some degree based on appraised values and with home values increasing, short sale prices go up in tandem with the market.
How Does The Charlotte, NC Metro Area Stack Up Against National Averages?
The "good news" (for home owners/sellers) is that the Charlotte market has an even lower level of foreclosed homes that were available for sale. Of course, this is "bad news" for anyone looking to get a great deal on a foreclosed home. (See chart below.) In actuality, even three years ago, Charlotte's foreclosure sales as a percentage of total home sales was half that of the national averages. In 2014, distressed property sales were just 6.7% of our total home sales--4.3% lower than national averages.
The most recent activity as of January 2015 shows that foreclosure sales in Januar 2015 were down 32.8% versus the same month one year ago (short sales also were down 31.8% versus one year ago). At the same time, non-distressed property sales were up 13.3%. The total share of Charlotte-area distressed property sales in January 2015 was 6.2%, lower again than in 2014.
So if you've been wondering why it seems so hard to find a great foreclosure deal in the Charlotte metro markett, that's because it is. There is very little inventory. And as that inventory continues to shrink, prices will continue to go up. As I increasingly tell buyer clients who want a foreclosure or short sale "deal," that particular train has pretty much left the station.
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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.
If you're considering selling or purchasing a home in the Charlotte metro area, I'd love an opportunity to earn your business, exceed your expectations, and to prove to you that:
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