Santa Barbara, CA --- March 8, 2011 --- RealtyStore has completed a new study of current and pending foreclosure listings in North Carolina. The study revealed the potential for foreclosure inventory to double in Mecklenburg County. The analysis revealed the number of foreclosures currently for sale in Mecklenburg County represents less than 50% of all foreclosures held in local REO owner portfolios.
RealtyStore identified 2,482 foreclosures recorded in Mecklenburg County, including foreclosures in Charlotte North Carolina, and only 1,170 of these foreclosures are currently listed for re-sale. The balance comprise the area's shadow inventory of dormant repossessed properties.
"Shadow inventory can build up for a number of reasons," noted Peter Ranck, Vice President for RealtyStore. "Slow sales, continued new foreclosure starts, and holds for redemption rights can add to REO inventory. In Mecklenburg County, RealtyStore shows 47% of REOs are currently listed for re-sale on the market. At the current inventory levels, the Mecklenburg County market will need to work through twice as many foreclosures as it sees today."
Foreclosure listings are priced at a significant discount when compared to the market median price. The median price of Mecklenburg County's foreclosure listings, including both bank foreclosures and government foreclosures (including HUD homes and Fannie Mae foreclosure inventory) is $95,900. This represents a 49% lower median price than Mecklenburg's overall median home price of $189,500. Government owned foreclosures lead the the lowest list prices for REO foreclosure listings in the area.
In Mecklenburg County, HUD homes show a median for sale list price of $85,000, or 55% below the market median price. Fannie Mae - Freddie Mac foreclosures post a median price of $90,850, which is 52% below market median. Bank foreclosures are listed 47% below market, with a median list price of $99,900. Given the motivation for these institutional owners to liquidate their inventories of foreclosed houses, prices may be pressured further downward to attract buyers or meet further reductions commanded by purchase offers.
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Foreclosure listing means an REO which is listed for sale with a published asking price.
REO stands for Real Estate Owned. These properties have been fully repossessed by a bank, lender, or government-sponsored-enterprise (GSE) such as Fannie Mae or Freddie Mac, or a government agency such as the VA or HUD.
Median price is point where 50% of prices are above and 50% are below.
Shadow inventory is the inventory which is not listed for sale, but is held in an institution's REO foreclosure portfolio.
RealtyStore Reviews and Foreclosure Trends studies provide the total number of REO foreclosure properties with a recording date on or before the date of this release. REO properties have completed the foreclosure process and have been repossessed by a bank, lending institution or government sponsored loan guarantor such as Fannie Mae, Freddie Mac, HUD or the VA. REO title holders, inventory counts and prices in any area can vary at any time. REO counts and prices are accessed through RealtyStore’s proprietary database which is derived through hundreds of public and private data providers. Local housing market data is derived from third party and public records offices.