The recent recession has caused Charlotte foreclosures to be at an all time high throughout the city and for multiple types of property. Residential property has been hit the hardest by the recession, and can be attributed to many mortgages being worth much more than the estimated value of the property. Some retail and other industrial property has also been foreclosed upon by banks, mainly for smaller business who could not weather the economic devastation that occurred in recent years.
While some would view this increase in Charlotte foreclosures as a problem to economic revitalization, some economists see it as the foundation for a boost in spending and motivation for prospective home owners and new entrepreneurs. Since the economy is driven by more consumption than production, credit and loans allow people to purchase more than they could afford with their current income. Since the rate of Charlotte foreclosures shows that the amounts will at some point overwhelm the system and cause an economic recession, this cycle of uninterrupted growth through credit can again resume from a more equitable consumption plan.
The demand for houses greatly outweighed the available property and caused prices, and subsequently mortgage loans, to increase over decades. When many Charlotte foreclosures occurred during the recession, this greatly decreased the demand for homes since it was shown that their worth was at a much lower value than the inflated prices showed. These prices have dropped over the past few years as the only property that was being bought were the Charlotte foreclosures that were being offered at a greatly reduce price by banks who simply wanted to get rid of their bad assets. Through this method, prospective home owners have been able to get their investment at a price that is both economically affordable by their incomes and a wise investment since the price was well below market value.
The simple rule of price inflation leading to an unstable economy is shown through the Charlotte foreclosures and the subsequent actions taken by banks and buyers to return the price to a natural level. Only through imperfect information, which is a cornerstone of price inflation, did some many houses in the area become just another of the many Charlotte foreclosures that were reposed by banks. Much like the great depression and the extensive line of credit that was allocated to consumers which caused price inflations to skyrocket, Charlotte foreclosures were caused by an unrealistic pricing design that was too high to allow a moderate decrease in demand once perfect information became available to the populace.

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