Following the recession, foreclosures were a major issue in the housing market. However, that problem has begun to wane, which could create a better market for people looking to buy a house in Charlotte.
In April, there was a reported 115,830 foreclosure filings – a 1 percent decrease from March, according to RealtyTrac's latest U.S. Foreclosure Market Report. On a year-over-year basis, filings were down 20 percent. Bank repossessions increased, but experts say this shouldn't be worrisome.
"The rise in bank repossessions in many states is a sign that those markets are working through the final remnants of foreclosures left over from the recent housing crisis," said Daren Blomquist, vice president at RealtyTrac. "Many of these bank-owned homes are bottom-of-the-barrel properties in terms of location or condition, but they will provide some much-wanted inventory of homes for sale in some markets in the coming months."
Strong home price appreciation keeping foreclosure activity in check
One of the biggest reasons foreclosures are on the decline is rising home prices. In the past couple of years, appreciation has been strong, bringing many people into positive equity – and reducing their risk of repossession.
March continued the upward trend, as CoreLogic's Home Price Index report revealed an 11.1 percent year-over-year increase. When compared to March, prices were up 1.4 percent. Gains are expected to continue, with the Pending HPI projecting a 6.7 percent annual bump in April, and a 0.8 percent month-over-month increase.
"Home prices continue to rise across the nation, but affordability, tight credit and supply concerns are becoming an increasing drag on purchase market activity," said Anand Nallathambi, president and CEO of CoreLogic. "In many markets – especially major metro areas like Los Angeles, Atlanta and New York – home prices are being driven up at double-digit rates fueled by a lack of inventory and record levels of cash purchases."
As Nallathambi stated, affordability could become an issue for buyers if strong appreciation continues. But, mortgage rates have been on the decline, which could help cancel out price increases.
Those interested in moving forward on a local housing acquisition, or hoping to sell a house in Charlotte, can benefit by partnering with Lodestone Real Estate. The trusted agency has helped hundreds of individuals successfully navigate the path to homeownership during its years in operation.