FORECLOSURE & SHORT SALES DROPPED IN CHARLOTTE REGION IN FEBRUARY 2023
FORECLOSURE & SHORT SALE BARGAINS REMAIN HARD (IMPOSSIBLE?) TO FIND
Foreclosure and short sales as a percentage of total home sales in the Charlotte, North Carolina region remained very low at 0.4% in 2022. From 2021 to 2022 there was no change in the sale of lender-mediated properties. Compared with 2020, the number of distressed property sales was half that in 2021 and 2022 and two-thirds lower than in 2018. In February 2023, the percentage of distressed property sales dropped month-over-month by 0.6% to 0.3% of total sales. Year-over-year, distressed property sales were down 22.2%.
In February 2023, year-over-year lender mediated sales represented just 7 additional foreclosure sales over February 2022 and just one additional short sale over February 2022. Month-over-month, the number of foreclosure sales decreased from 18 sales to 7 sales, while short sales decreased from 3 sales to just one sale.
At the same time, foreclosed and short sale median home prices continued to increase. The median sale price of foreclosure sales increased 144.0% over February 2022, while the median sale price for the entire Charlotte region housing market decreased 1.9% year-over-year in February 2023.
INVENTORY TRENDS FOR DISTRESSED PROPERTIES IN THE CHARLOTTE REGION
MEDIAN SALE PRICE TRENDS FOR DISTRESSED PROPERTIES IN CHARLOTTE
If you've been searching for a distressed property "bargain" in the Greater Charlotte area and are having a hard time finding one, it's no wonder. The number of distressed properties remained low throughout 2022 into the second month of 2023, while prices for these properties increased significantly. And while the number of lender-mediated sales is likely to increase in 2023, it's not likely to increase to a level that has a significant impact on Charlotte region home sales.
Moreover, a monthly report just released by CoreLogic on loan performance insights showed that for the month of January 2023, 2.8% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 0.5% decrease compared with 3.3% in January 2022 and a 0.2% decrease compared with December 2022. We are seeing two years of a downward trend nationally in foreclosures, which only further strengthens an argument that along with a continuing housing shortage there is not likely to be a housing market crash any time soon.
5 REASONS NOT TO WAIT FOR A FORECLOSURE BARGAIN IF YOU'RE BUYING A HOME
5 REASONS NOT TO WORRY ABOUT A LOT OF COMPETITION FROM LOW-PRICED DISTRESSED PROPERTY LISTINGS IF YOU'RE SELLING A HOME
REASON #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.
REASON #2: In 2022, foreclosure filings throughout the nation were below pre-pandemic levels, despite an in increase in 2022. While the housing market is experiencing an expected rise in foreclosures, it's nowhere near the crisis levels seen when the housing bubble previously burst. And that won't lead to a crash in home prices.
WHY YOU SHOULDN'T FEAR FORECLOSURE HEADLINES
REASON #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.
HOME EQUITY IS A SOURCE OF STRENGTH FOR HOMEOWNERS
REASON #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.
WHY THERE WON'T BE A FLOOD OF FORECLOSURES COMING
REASON #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. January's 1.5 months supply of homes in the Charlotte region keep us in seller "territory." As Susan Wachter, Real Estate Professor at The Wharton School of Economics said: "This is not a replay of the Great American Housing Bubble." There is certainly NO HOUSING BUBBLE in the Charlotte region.
WANT TO STAY ON TOP OF FORECLOSURE & SHORT SALE LISTINGS IN THE CHARLOTTE REGION?
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/lender mediate sales trends in February 2023 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 24+ 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"
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