An often asked questions from buyers looking in the Pinehurst area for real estate is “Are there many foreclosures?”.
This could be for many reasons and one of the main reasons is that much of our real estate isn’t employment driven. Many of the homes here are owned by retirees and they often don’t “need” to sell. If they do want to sell their homes they often leave them on the market hoping to get the price they want. That does leave a bit of a stagnant inventory, but the homes don’t often go into foreclosure.
Some of the foreclosures we have seen are those homes built by speculative builders. Those builders that built homes from 2007 have had difficulty selling the homes for the amount the homes cost to build. And as they often use lending to build these Pinehurst area homes, they may sometimes give the homes back to the bank instead of selling them for less than is owed (often called a short sale).
Not all foreclosures are builder spec homes. We have had some instances when home owners had to move and could no longer pay their mortgage. However, the total number of foreclosures in the Pinehurst real estate market as of the date of this article is less than 1%.