In a recent article I read a few days ago they were talking about the amount of homes that are on the market in the Charlotte, NC. area that are listed as foreclosure homes and short sales have actually declined since last year.
The article gave a brighter picture than most experts had predicted in regards to what the inventory levels actulaay looked like. Estimates had the number of homes that are mediated by banks close to 40% to as much as 50%. However; the study showed that through May 2011 the number is actually 30%. That is a substantial difference between what people estimated and what the numbers actually show.
To put it in even better comparison the number is 25% less than it was last year at the same time. This trend is showing that the housing market is starting to stabilize...though slowly. As fewer people are losing homes and trying to sell homes that they owe more than the home is worth.
Another interesting fact that came out of the article on short sale/foreclosure listings was the pricing. It showed that the median price for short sales actually went up from last year. However; foreclosure prices dropped. A lot of the foreclosures are based on condition of the property. With limited financing options availble for the foreclosures the banks are in a position to take less money to move the homes versus the short sales which tend to have more financing options available to them.
The one variable the article mentioned; and one noone seems to have a number on, is the shadow inventory. This is homes that the banks have foreclosed on but have not put on the market. Estimates have ranged up to a million homes nationally. But, since each market is different we do not know what the number is for the Charlotte area currently.
But the numbers do show a positive sign for the hosuing market in Charlotte. No, we are not seeing prices return to pre mortgage crash prices. But we are seeing a stabilization of the market right now. The trend is showing that pricing has remained stagnat for a few months.
This coupled with companies anouncing expansion and jobs into the Charlotte area and unemployment beginning to show signs of decreasing is a positive sign for the Charlotte housing market right now.
Dave diCecco
Realtor/Broker
www.davedicecco.com
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