Foreclosure Real Estate Investments and Home Buying Pick Up in NC

by on Real Estate Investing

Home buyers and people involved in foreclosure real estate investments contributed to the increase in the number of housing unit sales in some areas of North Carolina in December 2010. Compared with the same 2009 month, sales figures for certain areas of the state rose, with some recording an increase of over 20%.

Foreclosure Real Estate Investments and Home Buying Pick Up in NC

Sales of newly built and existing houses, including Greensboro foreclosures, rose in the state for the month. In Charlotte, the rise for December was 23.4% compared with the same 2009 period. A total of 1,885 housing units were purchased in the area during the month compared with the December 2009 total sales of 1,527. When compared with November 2010, home sales increased by 26.8% in the last month of 2010.

Partly because of the huge number of North Carolina bank foreclosures, the average selling price of houses in the city dropped by 8.4% in December 2010 to $193,910. The average selling price in December 2009 was pegged at $211,705. Compared with November 2010 when the average selling price of a residential property was $215,239, December price declined by 10%.

Transactions related to foreclosure real estate investments also helped increase the number of pending sales agreements in December, bringing the total to 1,479 which represented a 0.9% rise compared with the December 2009 total of 1,466. When compared with the previous month, pending contracts signed by homebuyers and investors represented a surge of 2.1%. Despite a decline in prices, the sales increase is considered good news for Charlotte.

The rise in housing sales in Charlotte followed a November report of rising existing housing sales in the whole state, with buyers purchasing foreclosures for sale and other existing dwellings 5.6% more than they did in November 2009. The combined rise in statewide sales of existing dwellings and increase in total housing unit sales in December in certain areas of North Carolina prompted a more optimistic outlook for the state's housing market.

According to analysts, although the market will remain mired in foreclosure problems in 2011, people involved in foreclosure real estate investments and traditional homebuyers will be more confident in purchasing residential properties during the year. Improvement in the region's job market is being cited as one of the factors behind sales increases.

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