Non-Foreclosure and Bank and FHA Foreclosure Home Sales Decline

by Donald Hanz on Foreclosure Crisis

There were fewer buyers of bank and FHA foreclosure home properties in Charleston, South Carolina during November 2010 when compared with last year. Non-foreclosure property sales also declined, resulting in a 25% drop in overall housing sales for the month. However, realtors believe that last year's sales figures were artificially inflated by the federal government's tax credit program.

According to them, they expected sales of non-foreclosed houses and Charleston foreclosed homes to be lower this year mainly because of the intervention created by the tax credit initiative. The good news is that so far, the 11 months of the current year have a total housing sale that is 6% higher than the same period of 2009. Prices of residential properties for the current year are also better compared with 2009 levels.

Despite huge numbers of bank foreclosures in South Carolina, prices of housing units in Charleston rose by 10% in November 2010 compared with the same period of 2009. Median year-to-date home sales price for 2010 is also 4% better than the median price recorded for the 11-month period of last year that ended November 30, 2009. Analysts believe that both year-to-date prices and sales figures show that the metro area's housing market is starting to attain some form of stability.

Home prices, including rates for an FHA foreclosure home, fluctuated during the current year, with the lowest recorded in February at $179,000 while the highest was pegged at $199,055 last August. Meanwhile, median selling price of houses in November was 3% lower than last month's price of $194,887. Residential property inventories, on the other hand, also recorded a decline for the 11th month of the current year.

A total of 8,802 dwellings were listed for sale in bank properties listings and other residential property listing services in Charleston for November, representing a 7% decline when compared with the November 2009 total of 9,429. Houses that got sold during the month stayed for around 106 days in the market before they were purchased.

The time prior to getting sold spent by an FHA foreclosure home or a non-foreclosed house in the Charleston market for this year is longer when compared with November 2009 when the average period was 97 days. In November 2008, houses were on offer for an average of 89 days before they got purchased.