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Foreclosure Sales Drop 22.2% In Charlotte Region In February 2023.

By
Real Estate Agent with Coldwell Banker Realty 179530

 

Foreclosures hard to come by in Charlotte region

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.

 

Foreclosure Sales In Charlotte NC February 2023

 

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

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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.


2022 Foreclosure Activity in USA Lower Than Before The Pandemic

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



This is not the Great American Housing BubbleREASON #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"

 

Great Homes In Charlotte

 

 

 Image courtesy of vectorolie at FreeDigitalPhotos.net

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 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
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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.

 

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

So far here, our foreclosure market is not existent.  we will see. Great information.  Thanks for sharing, enjoy your upcoming weekend, and sell a house. Bill Salvatore

Mar 31, 2023 06:06 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Bill Salvatore - East Valley good morning, Bill... essentially, our distressed property sale market is also non-existent. It's been that way for years. I'm still amazed at how many people think we have lots of distressed properties for them to buy at bargain prices.

Mar 31, 2023 06:08 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Nina,

Our distressed property sale market is non-existent and its been that way for years! I always chuckle if a buyer is looking for a distressed property..its like looking for a needle in a haystack!

 

Mar 31, 2023 06:26 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Dorie Dillard Austin TX hi Dorie... I'm always amused when I'm speaking with prospective buyers in a lower budget that when I tell them there's virtually nothing on the market in their budget how quickly they respond that they are happy to look at foreclosures and short sales. There's even fewer of those available. For some reason, people continue to have the idea that distressed properties are a dime a dozen when they essentially disappeared in much of the Charlotte region years ago.

Mar 31, 2023 06:28 AM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

This is very good news Nina Hollander, Broker . Good to know people can afford their homes, as expensive as they are. Thank goodness for the wonderful business climate NC is providing it's people.

Mar 31, 2023 06:39 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

As soon as someone calls and asks for a "great deal" on a foreclosed property,  I know these "buyers" are not in the right market!

Mar 31, 2023 06:42 AM
Bob "RealMan" Timm

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 and then those same callers what to ask for a contract for deed.

Mar 31, 2023 07:01 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Bob "RealMan" Timm good morning, Bob... homeowners are not under water the way they were 10-15 years ago. All those reports of it being 2008 all over again don't take this into account. Homeowners have plenty of equity and many have refinanced their homes to very low rates.

Mar 31, 2023 06:49 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 hi Sheila... same here. I'm telling those people that foreclosure bargains in Charlotte region are an urban myth!

Mar 31, 2023 06:50 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Nina and I have to say I do not notice short sales in the Denver area but sure we have some.  Make it a great weekend

 

Mar 31, 2023 08:44 AM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Great report Nina! You are very detailed with the data and I'm sure homebuyers will find the information helpful. We are seeing an increase in foreclosures in my market, but they are typically lower end and require a great bit of rehab.

Mar 31, 2023 08:52 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Will Hamm hi Will, given all the equity growth for homeowners in the past several years, I can't imagine what it would take for a homeowner to be under water right now.

Mar 31, 2023 08:57 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Pat Starnes-Front Gate Realty thanks, Pat... so far, Charlotte has been very low on lender mediated sales for years. I don't see that changing much this year.

Mar 31, 2023 08:58 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, when the public see the foreclosures dropped 22%, with so few foreclosure listings, it doesn't take much!

Mar 31, 2023 10:20 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Joan Cox hi Joan... when you have just eight lender mediated sales out of almost 3,000 sales in one month, it's like a drop in the ocean.

Mar 31, 2023 10:39 AM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Nina foreclosures are almost non existent around here right now.  Homeowners have lots of equity, so they are unlikely to give it up easily.

Mar 31, 2023 12:50 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

George Souto hi George... for some reason media "experts" make it sound like the market is going to hell in a handbasket. This is not 2008.

Mar 31, 2023 01:00 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Charlotte home buyers and sellers are certain to value your real estate market report, Nina.

Mar 31, 2023 01:48 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Myrl Jeffcoat hi Myrl... thanks for stopping by and leaving a comment. Hope your week has been a good one.

Mar 31, 2023 01:50 PM