Surge in Distressed and Pre Foreclosure Homes Dragged Down Prices

The rise in the number of distressed houses and pre foreclosure homes in Greensboro, North Carolina and in the rest of the Triad region has dragged down the prices of residential properties in the area. According to Triad realtors, recent prices have dipped to a level that is nearly 25% lower than what was recorded during the peak period of 2007.

The high number of foreclosed homes in Greensboro North Carolina and in the rest of the Triad market has been blamed by realtors for the price depression that characterizes the region's housing industry. In February of this year, prices of residences dipped to $156,000, declining by 24% compared with the February 2007 peak price of $205,000.

This rate is also the lowest ever recorded in the area in the past 13 years. Realtors further stated that, with foreclosure homes in North Carolina remaining elevated, prices of homes are unlikely to recover soon. Sales of residential properties also took a beating when the crisis started, real estate agents further revealed. In the past six years and a half, sales of residences in the Triad have declined from their peak by almost 48%, according to regional housing data. Realtors also claimed that the market is set for another difficult year and might have to face worse conditions before it recovers.

They reported that the huge amount of pre foreclosure homes and distressed houses in the Triad region will take around 15 months to get sold, judging from the pace of sales seen in the area in the past few months. They also reported that homes priced over $500,000 were the ones hit hardest by the industry slump, with most of them remaining unsold for months.

Currently, the region has a supply of homes in this price range equivalent to 40 months. With majority of the very few buyers preferring to find bargain homes rather than regular priced dwellings, realtors stated that houses priced above half-a-million dollars will likely remain in the market for an even longer time. Local agents and real estate brokers who have been in the Triad market for a long time have claimed that they have never seen the area's housing market in this condition before.

They also predict that things will likely get worse in the coming months as more pre foreclosure homes end up getting repossessed or seized by lenders. They claimed that the job market of the region should improve for the housing market to get out of its current slump.