Last year, I had more than a few dozen clients who had recently lost money on a home they had purchased at the height of the real estate boom in a bubble market.  They were moving to Charlotte for a better quality of life, lower home prices, and lower cost of living.  They found me as they were looking for a bank-owned or short sale listing. 

Overwhelmingly, the refrain was the same in that they were disappointed with the prices of real estate here in the Queen City.  In their cities, home prices had dropped substantially and the bank owned inventory was as plentiful as the owner-occupied homes.  Charlotte had yet to experience such a decline.  Sure, we had our fair share of defaults but prices were holding steady throughout the summer.  Then, around early fall, the bottom dropped out of the market as locally 50% fewer homes were selling in '08 as did in '07 and '06 (the last "normal" year).  However, the banks were still holding to their prices, reluctant to negotiate much past their already reduced prices.  Occasionally, a bank would lower their price substantially, causing a buying frenzy but overall it was rare. 

My how times have changed. 

Charlotte, like the other top 20 MSA's, has now started to see price declines as a result of the sustained lack of sales.  As a result, the banks are now pricing their REO's very aggressively and taking substantial discounts.  It's not uncommon to see a 5% decrease for every month the house is on the market.  It's also not uncommon for the banks to look to receive closer to 20% of their asking price as opposed to the 10% they were holding to last year.  Why this is happening now is anyone's guess. 

Maybe the more toxic assets they shed, the faster they feel it will spark recovery?

Maybe the more toxic assets they shed, the more TARP money they'll receive? 

Maybe since the new administration feels the banks are "too big to fail," they'll just do whatever they please. 

I certainly don't know the answer but buyers, looking for deals in the Charlotte area, are certainly having a field day as it seems as if Charlotte is on clearance.

Charlotte NC Homes