Sales of residential properties, including single family homes, duplex real estate foreclosure and non-distressed houses, inched up in Charlotte, North Carolina in March 2011 compared with February of this year. However, when compared with March 2010, sales have remained flat. Housing prices also posted a drop when compared with one year ago.

The number of regular houses, bank foreclosed dwellings and HUD homes in Charlotte that were sold in March 2011 jumped 43% compared with February 2011, based on figures presented by the Charlotte Regional Realtor Association. However, compared with one year ago, sales remained almost flat, with figures rising by only 0.2%. Meanwhile, selling prices for the month showed a decline when compared with year-ago levels.

With foreclosed homes in NC remaining elevated, most realtors claimed that the decline in prices is to be expected. The average selling rate for March of this year was $194,465, declining by 1.6% from March 2010 when the average price was $197,564. In terms of median selling prices, figures were also down year-over-year, with the March 2011 median dropping by 1.3% compared with the same 2010 month. Separate price data from the Standard & Poors/Case-Shiller Home Price Index showed that Charlotte was one of 10 U.S. metros that posted their lowest price levels in February since peaking in 2006.

In terms of pending sales, the number of single family homes and duplex real estate foreclosure and non-distressed dwellings that were under contract in March surged by 32% compared with February, but remained 12% lower than pending sales figures recorded in March of last year. Realtors cited the federal tax credit program as the reason for the higher number of pending agreements last year.

What is more worrying for local realtors is the huge amount of home foreclosures and real-estate owned properties that banks are supposedly holding off the market. According to some local real estate agents, the shadow inventory of the metro area is considerable and if lenders release these properties into the market by the bulk, it will be detrimental to the areas housing industry. Despite worries over the so-called shadow inventory, agents are encouraged by the improving job market.

According to them, there will be more people able to purchase single family homes and duplex real estate foreclosure properties in the coming months as the regions unemployment level dipped to 10.7% in February from the January rate of 11.2%. They also reported that short sales are rising in the area which helps cut down the number of foreclosure transactions.

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