Short sales and foreclosures are continuing to cause downward pressure on home sales at every price point. While appraisers do not use these types of sales to determine the fair market value of a home, these sales do ultimately have a huge impact on overall sales prices.
When buyers choose to buy a significantly lower priced home, it forces the sellers of fair market value homes to lower their price in order to attract a buyer. This is in turn results in a "lower comps" for a community which makes it almost impossible for a seller to maintain a higher price in a depressed market. Even if a seller can hold out for that "right" buyer to get their price, a bank may not appraise the home for the contract price if there isn't sufficient sales history in the community to support the higher price. Until the market is purged of a large percentage of the short sale and foreclosure inventory on the market, there is not likely to be a recovery in home prices here in our area.
See CNN's recent article entitled "Home price plunge is widespread."
Your Property People, Inc. is a full service real estate brokerage offering residential and commercial services to the greater Charlotte area. We have agents who speciaize in Western Union County including Marvin, Weddington and Waxhaw and the south Charlotte area, including Ballantyne, Piper Glen, and South Park.
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