FORECLOSURE & SHORT SALES REMAINED LOW IN CHARLOTTE REGION IN APRIL 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 continued to remain very low at 0.4% in April 2023. This percentage has remained steady since January 2023, when the percentage stood at 0.6%
In April 2023, year-over-year lender mediated sales represented just 3 additional foreclosure sales over April 2022 and just two additional short sale over April 2022. There was no change month-over-month.
At the same time, foreclosed median home prices continued to increase. The median sale price of foreclosure sales increased 44.8% over April 2022, while the median sale price for the entire Charlotte region housing market decreased 1.3% year-over-year in April 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 projected to increase in 2023, it's not likely to increase to a level that has a significant impact on Charlotte region home sales.
FORECLOSURE NUMBERS TODAY ARE NOTHING LIKE 2008: VIDEO
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.
WHY TODAY'S HOUSING MARKET IS NOT ABOUT TO CRASH
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.
HOMEOWNERS HAVE INCREDIBLE EQUITY TO LEVERAGE TODAY
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 mediated sales trends in April 2023 is provided by Nina Hollander 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"
Image courtesy of vectorolie at FreeDigitalPhotos.net
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