Jonathan Osman - Charlotte / Matthews NC

Cabarrus County North Carolina Market Update for:

Real Estate Market Update

Single Family Homes in Cabarrus County North Carolina Area 11 including:

Cabarrus Neighborhoods: Ashebrook, Beaver Pond, Beverly Hills, Bradford Park, Braxton Estates, Cabarrus Crossing, Canterfield, Central Park, Christenbury Mews, Cochran Farms, English Woods, Falcon Chase, Glen Grove, Governors Pointe, Greystone, Harbour Towne, Havenbrook, Hawick Commons, Heatherstone, Hidden Pond, Highland Creek, Highland Street Commons, Kellswater Bridge, Landsdowne, Magnolia Springs, Mallard Pointe, Mission Hills, Morris Glen, Moss Creek, Mountain Laurel, Paradise Estates, Park Place, Parkwood, Providence Manor, Quail Hollow, Ramsgate, Remington Estates, Roberta Farms, Rocky River Crossing, Rocky River Plantation, Shenandoah Estates, Shiloh Village, Skybrook North Villages, Southern Chase, The Farm at Riverpointe, Victoria Park, Winding Walk & Yate Meadow.

Data gathered for July 1- July 31, 2009

New Listings

In July, 330 single family listings were added to the inventory of homes for sale in area 11. This was a 5.98% decrease from June and a decrease of 15.17% from the past year.

Pending Sales

156 single family detached homes received a contract in July. This was 12.36% lower than those written the year prior and 47.65% fewer than were written in July 2007.

Sold Listings

159 homes closed in Area 11 of Charlotte in July. Closings for July were up 16.91% compared to 2008 and down 39.77% compared with 2007.

Days on Market

Of the homes which closed in July in Cabarrus County, the average days on market was 125, a 35.87% increase from a year prior. 91 listings sold in less than 100 days while 68 sold in 100 days or greater.

Seller Concessions

91 of the 159 (57%) homes which sold in in July offered the buyer a seller concession. Of those properties, the concessions averaged $4,294.

Tax Value as compared to Sold Price

143 of the homes that closed in Area 11 of Cabarrus County in July had a tax value assigned. Those listings sold at 101.70% of their listed tax values. 98 sold below tax value, with the lowest being a property which sold at 25.62% of tax value. There were 5 properties selling well over tax value (normally new construction or extreme renovations) with these unusually high factors removed the average drops to 89.29% of tax value.

Original Listing Price to Sold Price

When adjusted for seller concessions, the average sales price in Area 11 of Cabarrus County was $180,794. This averages to 91.96% of the original listing price with concessions and 85.74% without concessions. Sellers whose property sold in less than 100 days received 91.96% of their original asking price, while sellers needing more than 100 days received only 85.74%.

Buyer Financing

Of the closings in Cabarrus County in July, 53 used conventional financing, 64 FHA, and 24 paid cash, 16 utilized VA form of financing and 2 categorized as other.

Jonathan Osman
Charlotte Real Estate

Real Estate Market Update for

Lake Norman North Carolina, MLS Area 13

Including the cities of Mooresville, Cornelius, Huntersville, Denver, Terrell, Statesville, and Sherrills Ford

Data gathered for July 1- July 31, 2009

New Listings

In July, 288 single family listings were added to the inventory of homes for sale in area 13. This was a 13.83% increase from June and a decrease of 11.93% from the past year.

Pending Sales

92 single family detached homes received a contract in July. This was a 13.21% decrease than were written the year prior and 39.87% fewer than were written in July 2007.

Sold Listings

86 homes closed in Area 13 of Charlotte in July. Closings for July were down 10.42% compared to 2008 and 44.52% compared with 2007.

Days on Market

Of the homes which closed in July in Lake Norman, the average days on market was 142, a 1.43% increase from a year prior and 42% from 2007. 40 listings sold in less than 100 days while 46 sold in 100 days or greater. 6 properties took over 1 year to sell.

Seller Concessions

25 of the 86 (29%) homes which sold in in July offered the buyer a seller concession. Of those properties, the concessions averaged $6,553.

Tax Value as compared to Sold Price

79 of the homes that closed in Area 13 of Lake Norman in July had a tax value assigned. Those listings sold at 162.73% of their listed tax values. 30 sold below tax value, with the lowest being a property which sold at 60.44% of tax value. There were also 7 properties selling well over tax value (normally new construction or extreme renovations). With these unusual factors removed the average drops to 107.03% as a percentage of tax value.

Original Listing Price to Sold Price

When adjusted for seller concessions, the average sales price in Area 13 of Lake Norman was $547,747. This averages to 86.53% of the original listing price with concessions and 87.05% without concessions. Sellers whose property sold in less than 100 days received 92.07% of their original asking price, while sellers needing more than 100 days received only 91.71%.

Buyer Financing

Of the closings in Lake Norman in July, 59 used conventional financing, 13 FHA, and 12 paid cash, 1 VA and 1 other.

Jonathan Osman
Charlotte Real Estate

Total Charlotte NC Real Estate Market Overview

July 1, 2009 - July 31, 2009

Data for all counties and cities served by the Carolina Multiple Listing Service including Charlotte, Monroe, Concord, Gastonia, Mooresville, and many others.

New Active Listings

In July, 4503 single family detached homes were listed throughout the Charlotte area. This was a decline of 17.12% from 2008 and a increase of .60% from the previous month.

Under Contract

2082 Single Family Detached homes were placed under contract in July for the entire MLS area. This was an decrease from June of 5.66% and a decline of 18.83% from 2008.

Homes Sold

Sales in the CMLS were down 6.27% from 2008 as 1501 homes closing in July. There was a .07% increase over the month of June.

Days on Market

The average Days on Market for homes in the CMLS for July was 111, up 1.83% in July 2008.

Average Sold Price

The average sold price for homes which closed in July was $216,247, an increase of 11.19% from July a year earlier.

Percentage of Tax Value

1,404 of the properties sold in July that had a tax value assigned in the listing. The average sold at 121.04% above the tax value. Of the homes that sold in July, 708 sold below their assigned tax value. There were also many properties selling well over tax value (normally new construction or extreme renovations where the land is the origional tax value). With these unusual factors removed the average drops to 97.85% as a percentage of tax value.

Commission Bonuses

Just 56 properties offered the buyer’s agent a bonus for an accepted contract. Offering a bonus did not help the sell the home faster or net the seller more money. The average bonused property sold in 159 days at an average of 91.41% of asking price, not including the money paid for the bonus.

Original List Price to Actual Sold Price Percentage

Single Family Homes that closed in July sold at 89.89% of the original asking price. When concessions are included, the percentage drops to 88.53%. 901 properties sold below 100% of their original listing price while 559 sold at above 100% or more.

Homes listed for over a million dollars sold at an average of 86.50% of their original asking price. And they sold in an average of 155 days on the market.

Homes which sold at less than $100,000 sold at 82.41% of their original asking prices, with one bank owned property selling for 19.85%.

Jonathan Osman
Charlotte Real Estate

Every home buyer today is looking for a great deal and that has led them to consider foreclosed properties. However, most are unaware of the life cycle of such properties and the opportunities that exist at each stage. So here's a breakdown of the life of a foreclosed property and the benefits at each stage.

Pre-foreclosure
A pre-foreclosure is a property that is in distress and the owner is facing foreclosure. Often times, the owner is being foreclosed upon a mortgage but homeowners associations and bankruptcies can also force foreclosure proceedings. A pre-foreclosure (also known as a short sale) usually results in a seller selling the property for less than what's owed. The listed price of the property is set by the owner and their agent (if listed) and then later approved by the bank. Ultimately, the selling price is determined by either an appraisal of the property or an opinion of a local real estate broker (not the buyer's agent or listing agent). These properties are also sold As-Is, regardless of condition or age.

The approval process by the bank can take anywhere from 2 weeks to 2 months depending on the workload of the bank's loss mitigation staff. Also, the paperwork can be cumbersome and you'll need to have a participatory seller. The bank may require them to hold a promissory note or they may face tax penalties if they agree to the terms of their pre-foreclosure sale. Ultimately, for the buyer, pre-foreclosure properties are best in markets that have faced a substantial price decrease in a relatively short period of time.

Foreclosure Sale
In North Carolina, a foreclosure sale occurs at the local court house of the property being sold. At this point, the bank has hired a trustee (an attorney) to sell the property and a judge has held a hearing and found in favor of the bank to sell the property. The sales are a matter of public notice and anyone may bid on the foreclosing property. However, before you do so, you need to do your homework. These are auction style sales officiated by the court. They aren't true absolute sales as the foreclosing bank or party will secure their interest by bidding the amount owed to them.

First, understand that you are buying this property sight unseen most often and cannot have an appraisal or inspection. If the home is listed prior to the sale, feel free to have your agent take you through. It is a HUGE risk to purchase a home without seeing the inside.

Second, you'll either need a hard money loan, an equity line on a current property, or cash to make the purchase. Because you don't have a right to access the property, you cannot have an appraisal done. Therefore, this is inappropriate for 99% of home buyers.

Third, you need to know what is foreclosing on the property. All too often, a novice investor will bid on a $400,000 home for the balance of the HOA dues and think they've purchased the deal of a lifetime. What they're purchased is a world of trouble as they purchased a junior lien. That buyer would need to satisfy the primary lien or risk being foreclosed upon. Anyone interested in pursuing these types of sales should hire someone to do a title search to find out what they're bidding on and what else is hanging over the property (IRS tax liens, etc).

Finally is the price. If you're bidding on a first mortgage foreclosure, the foreclosing bank will bid the balance of the mortgage to secure their interest. If no one outbids the bank, the bank buys the house back and it becomes a bank-owned property.

These homes are generally still occupied and it's up to you to evict the tenants or former owners. Again, this can be very sticky so hire a good attorney to guide you through the process.

The Foreclosure Upset Period
After the high bid has been reached in a foreclosure sale, there's a 10 day bid upset period. Rarely, on a home with two mortgages, the second mortgage can come in an upset the bid to secure their interest in the foreclosing property. Anyone can upset a bid and some investors do nothing but upset high bidders.

The Bank Owned Sale
If a bank has foreclosed on a property and they are the high bidder, the property is listed for sale with a real estate agent. That agent lists the home through the MLS and anyone may make an offer. At this point, the home is vacant and clear of any liens. For most buyers, this is a great opportunity to buy a distressed home however there are a few areas where many run into trouble.

First, you need appropriate financing for the condition of the home. Many of the properties are not move-in ready and may require repairs. DO NOT EVER UNDER ANY CIRCUMSTANCES REPAIR A PROPERTY THAT IS NOT YOURS!!!!! I have been in properties where the only visible damage was that someone removed the kitchen cabinets. Other times, an A/C unit is missing. It is imperative that you obtain financing appropriate for the home you're purchasing, which usually means Cash or Conventional. FHA and VA are inappropriate for most bank properties with the exception being HUD and VA owned properties.

Second, you will need to do inspections. The properties are sold As-Is, where-is, no conditions, no contingencies, no repairs. Some feel that since that's the case, you wouldn't want to waste the money on an inspection. However, you may uncover a serious issue that may result in the home a bad deal. Hire a good inspector to know what you're getting yourself into.

The Bank-Owned Auction
Often times, a bank will have a number of properties listed on the market without a suitable buyer. Because they're not in the business of owning a bunch of real estate, they will often sell their currently listed homes at auction. These aren't new properties but ones that have failed to sell. Here in Charlotte, there's an auction like this once a month or so.

Buyers can utilize financing and can do inspections BEFORE the auction sale. Also, as with any real estate auction, there's a buyer's premium that the buyer pays (the auctioneers commission) that is tacked on to the highest bid. Therefore, you will need to be aware that you may have the high bid of $400,000 but after the premium, the sales price may be $450,000.

As my advice before, utilize your agent for this type of sale. Investigate the properties, know you're bidding on the right home, inspect the homes you're interested in, and get approved for any mortgage ahead of time.

Charlotte Bank Owned, REO, and Pre-Foreclosure Homes

Real Estate Market Update for

Single Family Homes in Mecklenburg County North Carolina Area 1 including:

Charlotte, Cornelius, Davidson, and Huntersville Neighborhoods East of I-77, North of N. Tryon Street, West of Cabarrus County, and South of Iredell County including the neighborhoods of Highland Creek, Vermillion, Heritage Green, River Run, Skybrook, Northstone, Cambridge Grove, and others.

Data gathered for May 1, 2009 - May 31, 2009

Active Listings

In 344 single family detached homes were listed for sale in Area 1 North Carolina. May's new listings were 15.05% more than in April and 18.29% fewer than were listed in May 2008.

Pending Units

209 Single Family homes received a contract. This was 11.76% greater than received a contract in April and 6.28% fewer contracts than in May 2008. When compared to May 2007 and 2006, 34.48% and 47.49% fewer contracts were written and accepted this past May.

Sold Units

139 Single Family Detached Homes were sold in May 2009. This was a increase of 3.73% from April and 26.46% decrease from May 2008. When compared to May's from 2007 and 2006 it is a staggering decrease of 50% and 58.88%.

Average Sold Price

In May, single family detached homes that sold in Area 1 sold at an average of $210,703 which was 16.73% more than in April and 4.49% decrease when compared to May 2008.

Average Days on Market

Of the homes that closed in May, they were on the market for an average of 103 days before receiving an offer. That was 4.63% less than the month earlier 24.10% greater than a year earlier, and 68.85% greater than in 2007. 89 Single Family homes sold in less than 100 days while 50 homes in 100 days or greater. 2 homes were listed for over a year before receiving an offer.

Seller Concession

67 out of the 139 homes (or 48%) that sold in May offered the buyer a concession, usually closing costs. The average seller concession was $4,456.

Buyer’s Agent Bonus

Offering a bonus to a Buyer’s Real Estate agent is widely thought to produce a quicker sale and net the seller a higher return. Only 4 closed listing offered such a concession, with the seller receiving 82.91% of their original asking price and a average days on market of 151.

Sold Price as a Percentage of Tax Value

131 of homes that sold in May in Area 1 had a tax value assigned to the listing. The homes that sold in May sold at an average of 95.72% of their listed tax values. 69 homes sold below tax value, the lowest of which was an REO which sold at 141.14% of its tax value. There were also 3 properties selling well over tax value (normally new construction or extreme renovations). With these unusual factors removed the average drops to 80.09% as a percentage of tax value.

Sales Price as a Percentage of Original List Price

Of the homes that sold in May in Area 1, sellers received 91.03% of their original asking price. With seller concessions included, sellers received on average 89.73% of their original asking price.

For homes listed for sale for less than 100 days, those sellers received 92.42% of their original asking price including concessions while homes listed for greater than 100 days received only 84.95%.

Buyer Financing

Of the homes that sold in May, 4 buyers used VA financing, 51 used FHA, 60 used Conventional Financing, 22 cash and 1 other.

Jonathan Osman
Charlotte Real Estate