Drop in Charlotte Home Sales Slowed Amid Foreclosures Homes

The decline in home sales in Charlotte slowed down in July, marking the first time home sales became lower by only 18 percent compared to home sales in July 2008.

Housing analysts in the area however fear that the rising number of repo homes would block any small improvement in the housing market.

In July, a total of 2,223 houses, townhomes and condo units were sold in the Charlotte area, a decrease of 18 percent from total home sales in July last year. According to Charlotte real estate analysts, the July home sales decrease rate was the smallest drop rate on a year-over-year basis since September 2007.

Home sales also increased compared to June 2009 sales, continuing a series of monthly sales increases in 2009 including the best level of spring home sales in 3 years.

Another positive sign observed by analysts is the slowdown in the drop rate for pending sales. In July, the drop in pending home sales was only 15 percent, the smallest rate of decline in pending home sales since July 2007.

The average home sales price fell to $212,977, a drop of 7.7 percent compared to the June sales price, but better than the double-digit drops in the first months of the year.

Across North Carolina, foreclosure filings in July increased to almost 6,100, a rise of around 33 percent compared to filings in July 2008. Foreclosure filings in Mecklenburg in July still surpassed the 1,000 mark for the fifth straight month, but did not surpass the April record number of more than 1,600 filings.

Foreclosures in Mecklenburg started to rise again after declining during some of the first months of the year.

In the first 6 months of the year, nearly 4,500 residential properties received foreclosure filings in Charlotte, based on a nationwide survey of foreclosure postings. One housing unit out of every 158 units was hit with a default or foreclosure notice, putting the Charlotte metro area 112th in a ranking of the 203 metro areas with the highest foreclosure rates.

In the same survey, North Carolina ranked 36th in foreclosure rate, with one housing unit out of every 326 units getting hit with a foreclosure filing.

One of the sharpest effects of foreclosures is their price reduction effect on surrounding homes. Home values in Mecklenburg County have been declining. About 20 percent of single-family detached houses sold in the first months of 2009 at heavy discounts had been in foreclosure for 18 months before they got sold.

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