Sales of Bank Foreclosures Rise in Charlotte

  Sales of residential properties, including bank foreclosures, improved in Charlotte, North Carolina, in January when compared with the same 2010 month. It also marked the second month in a row that sales have improved in the metro area. However, month-over-month change leaned towards a decline.

According to the Charlotte Regional Realtor Association, for January 2011, a total of 1,400 residential structures, including non-foreclosed and Charlotte foreclosures, were sold in the area. The total represents a surge of 4% when compared with January 2010. However, it also represents a decrease of 25% when compared with data from December 2010.

Housing industry experts have stated that other market indicators remain down, including residential prices. They attributed the continuous poor performance of the residential property market to the oversupply of North Carolina foreclosed homes for sale in the region. The same is happening in almost all parts of the U.S., analysts have stated. The coming months will not provide much positive news in the housing market if pending sales contracts are to be considered, local realtors further added.

Housing data from the association showed that pending sales agreements or purchase contracts that have yet to close have declined in Charlotte when compared with year-ago levels. Pending agreements for residential properties, including bank foreclosures, are down in January of this year by 23% compared with January 2010. Pending contracts are used by analysts to gauge the level of activity in the housing industry.

According to industry analysts, the decline in pending agreements for January 2011 continues the pattern of decline in this indicator in the past few months. Although pending purchase contracts did increase in December of last year, the trend was again reversed in January. Despite the high number of affordable home foreclosures, buyers are still staying away from the market, analysts also stated. Selling prices of houses also did not provide positive news last month.

Average prices of houses sold in January, including non-foreclosed homes and bank foreclosures, dipped by 6% to $188,147 when compared with January of 2010. When compared with December 2010, the price decline was 3%. Meanwhile, nationwide housing data remained lukewarm, leading economists to predict that the U.S. will probably be unable to mount a sustained economic recovery this year.