Foreclosed single family homes (owned now by HUD or another Bank – referred to as REO's) accounted for 27.5% of the sold inventory of 657 homes in Charlotte in June. Short sale homes (pre-foreclosure, selling for less than what's owed) accounted for only 4.5%. Astounding figures when you consider that combined, short sales and REO single family homes account for 16% of the total inventory in Charlotte (8% each).
In June, 182 REO homes closed in Charlotte North Carolina at an average sales price of just $110.036. A closer look reveals that 169 of the 182 REO sales closed below $200,000. In all, the average price per square foot was $53.47 and the banks received 97% of the final asking price. Considering the high demand for these properties, most averaged only 58 days on the market, while exceptional properties like 2301 Foral Ave in Dilworth sold in less than a week or two.
Competition among the higher dollar bank owned foreclosures is fierce in some areas due to the scarcity of the homes. 17631 Meadow Bottom in Preservation Pointe in Mountain Island Lake, 2635 Hamilton Crossing in Blakeney, and 2301 Floral all sold at or above the bank's asking price by one or two percent.
With only 29 short sales closing in Charlotte during July, the average sales price was $169,866 sellers receiving an average of 96% of their final price. The short sale homes were on the market a considerable length longer, 203 days, and sold at an average of $67.28 per square foot. Twenty-three of the short sale homes sold below $200,000 and one (10116 Saw Mill Road) sold for $725,000 – 56% of the original asking price.
By comparison, the bank owned properties closed at a 35% discount and the short sales closed at 30% lower than the traditional equity sales for the sales below $200,000.
Bank owned homes are clearly preferred by real estate agents showing clients around as evidence by the stats. Buyers searching out a bargain in the Charlotte market MUST keep in mind that bank owned properties account for only 8% of the market and that some are selling above asking price. Therefore, a quick decision is required to ensure that you get that dream home steal. However, not to be overlooked are the short sales which also hold 8% of the market but a scant 4.5% of sales. The discounts on these properties make them equally as enticing and with new programs like HAFA now available, the short sale process is moving a lot more quickly.