HUD Home Listings and Other Types of Dwellings Ignored by Buyers- By: John Cutts
August saw the housing market of Charlotte, North Carolina recording significant declines, with properties under HUD home listings and all types of residential properties posting poor sales numbers. The August numbers for pending sales and actual sales are the lowest for over a year, analysts have reported.
Around 1,700 dwellings, condos, townhomes and Charlotte home foreclosures were sold in the city in August, representing a 23% drop from the same month a year ago. The data was presented by the Charlotte Regional Realtor Association which also reported that closings declined by 13% in August 2010 when compared with July 2010.
In terms of pending sales or those contracts that have already been signed but are not yet closed, the decline was about 28% when compared with August 2009. The total number of pending North Carolina home foreclosures, existing houses and newly built dwelling sales totaled 1,740 in August, representing the biggest decline since March of 2009.
Realtors in the city have expressed optimism that the market will eventually attain stability, although they did admit that the huge number of properties under foreclosure home listings is causing buyers to stay away from the market. One good thing realtors are focusing on is the rise of home prices in August.
Although most properties under HUD home listings and foreclosed houses remain below market average, prices of regular dwellings are able to keep a balance within the market, with average home prices rising by over 7% to a little over $225,000. Average listing rate of homes are also up when compared with 2009 figures by 8.4%.
Real estate observers have stated that the decline in home sales is mainly due to the federal tax credit deadline. Sales of houses jumped during the beginning of 2010 due to the tax credit, but have returned to dismal levels since the deadline. Another factor cited by analysts for the sales decline is difficulty in acquiring mortgage due to tighter regulations.
Meanwhile, some realtors have reported some improvement in terms of buyer interest during August, particularly for cheaper dwellings like those under HUD home listings and properties within the $200,000-300,000 price range. Although not a lot of move has been made, realtors are optimistic that questions about availability are good signs, particularly in the current state of the market.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.