Foreclosures And Short Sales Still Hard To Find In Charlotte Region

By
Real Estate Agent with Coldwell Banker Realty 179530

 

Foreclosures hard to come by in Charlotte region

WHY FORECLOSURE & SHORT SALE BARGAINS ARE STILL HARD TO FIND IN THE CHARLOTTE REGION

 

Foreclosure and short sales as a percentage of total home sales in the Charlotte, North Carolina region remained very low at 0.3% as of August 2022. It's noteworthy that the Charlotte region began 2022 at just 0.3% of total home sales. This is 50% lower than at the start of 2021!

 

If you've been searching for a distressed property "bargain" in the Greater Charlotte area and are having a hard time finding one, here's why:

                                      

  • Foreclosure sales were down 38.5% in August 2022 versus August 2021. Charlotte region saw 8 foreclosure sales closed in August 2022 versus 13 in the same month one year ago.
                                                                                                                  
  • Short sales were down 55.6% in August 2022 versus August 2021 with 4 short sales last month versus 9 short sales one year ago.

  • Distressed property inventory remains low: in August 2022 Charlotte region had 41 distressed property listings out of a total of 6,738 active property listings.
     

Moreover, foreclosed and short sale median home prices continue to increase, as the chart below shows.  While non-distressed property sale prices increased 16.7%, foreclosure home property prices increase 29.7% and short sale property prices increased 81% in August 2022 year-over-year.

 

Median Prices For Charlotte Region Foreclosure And Short Sale Homes In August 2022

 

As of August 2022, the inventory of foreclosure homes for sale on a 12-month rolling basis in the Charlotte region was just 28 homes compared with 344 homes in the same month in 2017. The months supply of inventory of distressed properties was 1.7 months in August 2022, compared with the same time frame in 2017 when it was 3.3 months. 

 

INVENTORY TRENDS FOR DISTRESSED PROPERTIES IN THE CHARLOTTE REGION

 

As of August 2022, the median sale price of a foreclosed or short sale home on a 12-month rolling basis in the Charlotte region was just under $282,500 compared with $109,399 in the same month five years ago. In other words, distressed property sale prices have almost tripled in the past five years.  And if you do manage to "score" a distressed property sale, you won't be seeing any discounts to the list price...  distressed homes sold at a median 100.8% of list price as of August 2022. This compares to 96.5% five years ago.

 

MEDIAN SALE PRICE TRENDS FOR DISTRESSED PROPERTIES IN CHARLOTTE

 

DON'T WAIT FOR A WAVE OF FORECLOSURES TO FIND THAT BARGAIN

If you've been waiting on a wave of foreclosures to "hit" the market in 2022, here are five reasons why that has not happened and is not likely to happen:

  1. There are way fewer homeowners in trouble compared with the last housing crash, when there were some 9 million households in trouble. For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures). That caused prices to tumble. Today, while supply is growing, there’s still a shortage of inventory available. 


  2. As of August 2022, the number of mortgages still in forbearance was approximately 370,000.  That's quite the decrease from the 7.6 million homeowners who were in forbearance at some point during the pandemic, representing 15% of all mortgages.

    The share of Fannie Mae and Freddie Mac loans in forbearance stand at 0.34%; Ginnie Mae loans in forbearance  at 1.26%, and the forbearance share for portfolio loans and private-label securities (PLS) at 1.34%. Those homeowners who remain in forbearance still have the chance to work out a suitable plan with the servicing company that represents their lender. And the servicing companies are under pressure to do just that by both federal and state agencies.

    As the graph below shows, with modification, deferral, and workout options in place, four out of every five homeowners in forbearance are either paid in full or are exiting with a plan.

    Loans Exiting Forbearance Programs As Of June 2022

  3. Most homeowners have more than enough equity to sell their homes (unlike in the last housing crash). For those who can’t negotiate a solution who left the forbearance program without a work-out, many will have enough equity to sell their homes and leave the closing with cash instead of facing foreclosures.


  4. The forbearance program in the past two years provided homeowners an extra two years to get their finances in order and work out a plan with their lender. That prevented over 400,000 foreclosures that normally would have come to the market had the new forbearance program not been available.


  5. When foreclosures hit the market in 2008, they added to an oversupply of houses already for sale, resulting in a 9+ month supply of listings. Anything over a six-month supply can cause prices to depreciate. The current inventory shortage of homes nationwide (and in the Charlotte region) means the months supply of homes for sale still in seller "territory."

    Inventory is growing, but it's still a seller's market

 

Want to stay on top of foreclosure and short sale home listings in the Greater Charlotte area?

Contact Nina Hollander with Coldwell Banker Realty and we'll send you a list of homes as they come on the market.

  

SEARCH ALL CHARLOTTE REGION HOMES FOR SALE 

 

 

This Charlotte region housing market update on distressed property sales trends is provided  by  Nina Hollander/Carolinas Realty Partners with Coldwell Banker Realty, Greater Charlotte residential real estate experts serving  Charlotte region home buyers and sellers for 20+ years.

If you're considering selling or purchasing a home in the Greater Charlotte region, I'd love an opportunity to earn your business, to exceed your expectations, and to show you why experience matters and how:

"The Right Broker Makes All The Difference"

 

Great Homes In Charlotte

 

 

 Image courtesy of vectorolie at FreeDigitalPhotos.net

Posted by

 

 Nina Hollander, RE/MAX Broker, Realtor

 

 

 

Broker, Realtor, MBA, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with Coldwell Banker Realty
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: News You Can Use From The Greater Charlotte Area
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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

Comments (44)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Patricia Feager, MBA, CRS, GRI,MRP thanks, Patricia... none of us have seen distressed property sales in years... and yet, buyers out there seem to think there's a lot of them or that a lot of them are coming on market.

Sep 30, 2022 07:19 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Bill Salvatore - East Valley good morning, Bill... no home selling today or tomorrow... we are all hunkered down to see how much Ian impacts Charlotte area.

Sep 30, 2022 07:19 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Lise Howe thanks, Lise, for that nice comment. Wishing you a lovely weekend to come!

Sep 30, 2022 07:20 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina, every once in a while I look, but we rarely have just a handful still.   At this moment, there are 4 bank-owned properties in the Denver metro area.   

Sep 30, 2022 07:33 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

We do not have any here either. I think if we do not see economic improvement in a year, it will start to hurt the folks who bought at the very end of the boom.

Sep 30, 2022 08:08 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Joan Cox hi Joan... if the recession deepens we might see a few more foreclosures hit the market, but I'm not looking for any major movement.

Sep 30, 2022 08:13 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Jeffrey DiMuria 321.223.6253 Waves Realty hi Jeff... unless people need to sell their home it's just paper profits and losses. Right now in Charlotte we are not seeing home values going down...just prices accelerating at a lower pace. 

Sep 30, 2022 08:14 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Nina- foreclosures and shortsales...those are two words I haven't heard in a long time. If someone is waiting for one of those in your market, they'd better think twice and also call YOU. 

Sep 30, 2022 10:53 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Kathy Streib hi Kathy... I continue to be amazed how many people think we have lots of distressed properties for them to look at. It's why I do a market report like this one every so often.

Sep 30, 2022 11:02 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nina foreclosures and short sales are not very common here in CT as well.

Sep 30, 2022 02:21 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Nina,

You hit a lot of key points on this.  It will be interesting to see if or when foreclosures start to poke up their ugly head.   Happy Friday!

Sep 30, 2022 06:26 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I haven’t seen a foreclosure or short sale in over a year. Thank you for sharing your perspective. I hope you and your husband our safe and dry Nina Hollander, Broker 

Sep 30, 2022 08:41 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Sheri Sperry - MCNE® thanks, Sheri... I'd be very surprised if we see the level of distressed property sales we saw during the Great Recession.

Oct 01, 2022 04:35 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Paul S. Henderson, REALTOR®, CRS good morning, Paul, and thanks for the good wishes. We are fine... Charlotte was cool and grey yesterday... rained throughout the day, but not all that heavily (we've seen worse) and winds were not too bad (again, we've seen worse). Now I'm just waiting for things to dry out and I'll move my front porch furniture back out on the porch.

Oct 01, 2022 04:37 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

George Souto good morning, George. I suspect we won't be seeing any where near the number of foreclosures and short sales we saw during the Great Recession.

Oct 01, 2022 05:15 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor
 

Myrl Jeffcoat thanks, Myrl, for popping by. Wishing you a lovely Sunday and week ahead.

Oct 02, 2022 04:27 AM
Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse Advisor

Hi Nina,

 

As you are already well aware- the strict requirements by co-op's makes foreclosures rare- so it's more the realm of condos where we see foreclosures. Given more than half of condo buyers are all cash, it makes condo foreclosures rare here as well. That said- I finally completed the common charge foreclosure in my own building a few months back. It took almost 13 years from default to having a new owner take possession- insane. The previous owner only defense to our foreclosure suit was that the legal fees were too high... which of course causes more work and higher legal fees from the attorney's. The stall worked far longer than it should have. 

I am now in the small club of agents in Manhattan that has experience with a foreclosure from cradle to grave- not that I wanted that responsibility (since I was also condo board President)...and only once we took possession of the property was I the listing agent.

Oct 02, 2022 01:11 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Adam Feinberg good morning, Adam... as a "native" New York Cityite I'm very familiar with how coops keep foreclosures to a minimum and I remember how many of them upped their cash and buyer liquidity requirements after the Wall Street meltdown in the 1980's. I owned a coop on Park Avenue that had a 50% cash down requirement, but most people payed all cash. And you still had to get board approval to finance. As for condos, when I was in real estate in NYC we still did not have that many condos as a percentage of our sales... much has changed in the past 25 years... but 13 years in insane! I commend you on your patience. 

Oct 03, 2022 04:22 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is interesting to read how other markets are when it comes to REO. I list and sell REO in good times and bad, doing so in good times so i am first in line when REO increases. I am starting to see more REO, about 1 new REO  listing a week. There is an uphill battle with vacant homes that have been sitting for 2-3 years they were not able to foreclose due to govt restrictions. I am selling them as fast as i can get them, cash buyers who buy, fix and sell. Neighbors are happy that an eye sore in their area has been cleaned up 

 

Oct 03, 2022 05:44 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Scott Godzyk good morning, Scott... I'm always amazed that your area has quite that many REO's. It's certainly not the case. Every so often I see one and it will be in a neighborhood I don't dare step foot into.

Oct 05, 2022 03:53 AM