If you hadn’t read my title for this article, you might think this photograph would be introducing a post about the beautiful luxury homes at The Point in Mooresville, Lake Norman. In fact, this estate is currently one of the bank-owned properties at The Point. The listing price is $875,000 for this approximately 5500 square foot newly constructed but only 90% completed home. Not exactly what one would picture when thinking foreclosures!
This morning’s Charlotte Observer article, “Foreclosed Homes Draw Hefty Crowd, ‘Scary’ prices” highlighted a “mega-auction” of 500 homes held this past Saturday at the Metrolina Expo in Charlotte. Some notable comments and statistics:
- Most of the 1000 attendees were real estate investors
- Some high-dollar homes went for as little as one-third of their previous price
- Mecklenburg County accounted for almost one in six of North Carolina’s 54,000 filings last year
- Charlotte-area sales prices declined 7.2% in December compared to December 2007
- Many of the auctioned properties were subject to seller approval.
No Lake Norman homes were mentioned in this article so I thought I would provide you with a little insight into our higher priced foreclosures and short sales.
Right next door to the estate above is this home which is also bank owned. Both homes are about 90% complete as the builder lost these properties before he completed them.
In our Charlotte MLS I found 5 short sales in the The Point ranging from an astoundingly low $499,000 to $1,075,000. Interestingly, while there have been a number of significant price reductions in properties over $1.5 million, I did not see any mention of short sales or foreclosures in The Point itself in the highest priced listings.
What I did see, however, were three estates with offers of seller financing. Because jumbo loans have been so difficult to get, (above $417,000) it makes sense that an able seller might offer their own financing.
The key to a recovery of our normally dynamic Lake Norman housing market is a lowering of our inventory. Unfortunately, every foreclosure and short sale instantly becomes the most recent comparable sale for any property in the neighborhood when it closes thus lowering the bar for all future appraisals/sales.
This is the challenge we will continue to face until the number of active listings in Lake Norman drop back down to about an 8-month supply. Hopefully with the incredibly low interest rates and the loosening up of credit as the incentives kick in, buyers who have been on the fence will have the confidence to move forward, take advantage of these low prices and interest rates and help our market head to a recovery!