Charlotte, NC Foreclosures Dropped 59% In November
Charlotte, NC foreclosure activity dropped 59% in the month of November versus last year according to an article in the Charlotte Observer today. This is the sixth consecutive month of year over year declines in foreclosure activity in Charlotte, NC. Obviously it's great news for Charlotte home owners and seeing this decrease continue into December would be not just a great Christmas present but also a great start to the new year!
I continue to hear from lots of Charlotte area home buyers desperately looking for a "great foreclosure" deal and wondering why they can't find one. Home buyers moving to Charlotte from more "depressed" housing areas find it hard to believe when I tell them that the foreclosure "ship in Charlotte sailed quite some time ago." If you remember that old song "Where Have All The Flowers Gone?" now in Charlotte, it's like "Where Have All The Foreclosures Gone?"
Home sale statistics in Charlotte City for the month of November 2013 as compared with the two prior years bear out the decline in foreclosure activity as reported by the Charlotte Observer today. Here's how:
- The number of foreclosure homes for sale in Charlotte City has dropped precipitously in November 2013 versus November 2012 (but you could already see this trend in 2012 versus 2011). Inventory of larger homes with four or more bedrooms was down 42.6% as of November 2013 and 27.3% for homes with three bedrooms. Obviously, you can't buy what's not out there.
- New listings of foreclosure properties as of November 2013 are also way down. Homes with four or more bedrooms were down 72.2%. Homes with three bedrooms were down almost 32%; while homes with two or fewer bedrooms were down almost 39%. Less foreclosure activity, fewer new foreclosure listings.
- The percent of original list price received for foreclosure sales is a telling number as to why the "great foreclosure deals" are essentially non-existant these days in Charlotte. Homes with three, four or more bedrooms sold with only a 2% discount from original asking price as of November 2013. Banks are not negotiating. They know what the market is all about. So while they might still price somewhat below market values (based on condition and location of homes), they are not negotiating the prices down. So if you think you can pick up a foreclosure home at 50 or 60 cents on the dollar, think again. It's more like 98 cents on the dollar these days. The discount on foreclosure homes is actually less than on non-distressed resale homes.
The drop in Charlotte, NC's foreclosure activity in November 2013 is excellent news and a continuation of what we've been seeing for quite some time in our marketplace. Charlotte home buyers cannot realistically expect to find too many foreclosure deals any more.
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