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Report: Distressed properties constitute 22 percent of Charlotte real estate market

Distressed properties dominated 22 percent of the Charlotte metropolitan area real estate market in May, according to a report released today by the Charlotte Regional Realtor Association.

According to the report, 22.6 percent of the homes for sale were lender-mediated properties, a description that applies to homes that are listed, among other things, as in the foreclosure process, lender-owned, short sale or corporate-owned.

For May, 22.3 percent of finalized sales were lender-mediated.

It’s a new kind of report for the CRRA, which until now has only issued to the media monthly reports on real estate sales and listing activity. Those reports never included detailed data on distressed properties.

Of the homes listed for sale:

  • 2,206 were short sales, down 3.9 percent from a year ago;
  • 1,076 were foreclosures, down 31.8 percent; and
  • 13,755 were traditional, down 20.2 percent.

Of the finalized sales:

  • 250 were short sales, down 22.1 percent from a year ago;
  • 329 were foreclosures, down 44.8 percent; and
  • 2,598 were traditional, down 4.6 percent.
Tracking foreclosures and other distressed property activity has been a challenge for the CRRA, because when a property is listed for sale it is not mandatory that a “special conditions” field be filled to provide information on whether the property is, for example, lender-owned or in foreclosure. That means CRRA’s new lender-mediated report might not be a true picture of the distressed property market.

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