Charlotte Foreclosures Continued to Affect Construction Jobs

by Simon Lindsay on cities

Charlotte foreclosures continued to put downward pressures on the construction industry in the area, based on data from the Charlotte Regional Realtor Association in North Carolina and the Associated General Contractors of America.

Between October last year and October this year, the Charlotte metro area suffered from the loss of 12,300 construction-sector jobs, marking a drop of 23 percent in total construction employment in the area. Total construction jobs in Charlotte, Concord and Gastonia now total only 43,100.

In Raleigh, job loss in the construction sector was even greater, with a 25-percent decrease in construction jobs. Raleigh lost a total of 9,500 jobs in the one-year period ended October, leaving only 28,000 construction workers with jobs.

Nationwide, according to the AGC, the total number of construction jobs lost in the one-year period was 1.1 million, with the city of Reno, Nevada suffering the biggest drop in jobs.

AGC chief economist Ken Simonson said that even previously stable construction segments like power and manufacturing have suffered significant job losses. AGC chief executive Stephen Sandherr added that getting jobless construction workers back to work will provide a powerful boost to the national economy.

In November, total Charlotte foreclosures were still higher by 59 percent compared to filings in November last year, according to a report released by a California-based real estate research company.

A total of 1,150 foreclosure actions were filed in the Charlotte, Concord and Gastonia metro area, down from October by more than 9 percent, but far above the total filings of 726 in November last year.

Statewide, total foreclosure filings climbed up by more than 17 percent on a year-over-year basis to 3,273 in November, but the total was lower by more than five percent from October.

Included in the total filings were more than 400 households that received default notices, 1,321 households that received trustee sales notices and more than 1,500 homes that were already repossessed by lenders.

Compared to other states, North Carolina has been relatively strong against foreclosures as its pace of foreclosure was 36th in a ranking of foreclosure rates in November.

Based on data from the Charlotte realtor group, total home closings in Charlotte in November dropped by 9.5 percent from October to 2,000 units. The average price for units sold dropped from the October price of $196,204 to $195,244 in November.