Charlotte Foreclosures for Sale Pulled Down Home Prices

by Donald Hanz on cities

Breaking three consecutive months of price gains, home prices dropped by 0.4 percent in August due to Charlotte foreclosures for sale. Market data showed that gains in home prices were posted from May to July but dropped drastically in August.

Industry experts said that the North Carolina city was among the three cities across the United States that showed monthly price loss. The other two cities are Las Vegas in Nevada and Los Angeles in California.

The city’s annual price decline garnered it the sixth spot in the list of cities with smaller price declines. But industry experts pointed out that Charlotte’s 8.6 percent price drop in August was better compared with the same month last year’s figures.

Charlotte’s monthly price readings showed a slight gain in March, a drop in April, a three-month gain and a drop in August. According to industry analysts, the drop in August home price was an indication of the vulnerability of the housing market to Charlotte foreclosures for sale.

The abundance of cheap foreclosure houses on the market pulled down prices of other properties to a record low. Home sales took off with help from first-time homebuyers who took advantage of the federal tax credit.

Statewide, about 46,363 homeowners received at least one foreclosure filing in September. According to market data, North Carolina is on pace to surpass the total foreclosure filings in 2008.

A total of 873 foreclosure filings were posted in the counties of Durham, Wake, Johnston and Orange. An increase in foreclosure filings were reported in the counties of Durham and Wake in August.
Durham posted 187 foreclosure filings in September from 176 in August. Similarly, Wake County posted a total of 527 filings in September compared with 464 in August.

Meanwhile, industry experts are anticipating foreclosures to continue to dampen home prices in North Carolina. But on a good note, below market prices are attracting hordes of buyers to the area. Experts said that low-priced properties in Charlotte are mostly located in the east, west and north areas. They added that there is no significant improvement in the housing market in the coming months as unemployment rate continue to increase and the economy continues to remain sluggish.

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