Apr 22, 2009
Foreclosure activity in Virginia: Mixed bag
22 Apr 2009
Posted by VAR
Six Virginia metro areas were ranked in RealtyTrac’s most recent foreclosure survey, covering January – March 2009. There’s some good news and some bad news:
- #59 Washington DC: One in every 143 households in some stage of foreclosure, down 12% from Q1 2008, and down 11% from Q4 2008
- #92 Hampton Roads: One in every 241 households in some stage of foreclosure, up 132% from Q1 2008, and down 10% from Q4 2008
- #96 Richmond: One in every 255 households in some stage of foreclosure, up 69% from Q1 2008, and down 2.86% from Q4 2008
- #149 Roanoke: One in every 465 households in some stage of foreclosure, up 417% from Q1 2008, and up 90% from Q4 2008
- #180 Bristol/Kingsport: One in every 1109 households in some stage of foreclosure, down 1.5% from Q1 2008 and up 24% from Q4 2008
- #181 Lynchburg: One in every 1198 households in some stage of foreclosure, up 181% from Q1 2008 and up 309% from Q4 2008
Anecdotally, we’re hearing that because of the dearth of foreclosure activity, there’s actually very little inventory in the DC metro area. We hear there are buyers galore, many of them incentivized by the dramatic reduction in prices, low interest rates, and the first time homebuyer stimulus package. But the foreclosure activity is so low (and many sellers are unwilling to list their properties for sale, knowing that they can’t sell for what they need to make from the sale) that there’s very little out there for buyers to choose from.
VARbuzz contributor, Tony Arko of LoudounStats says there’s about three months of inventory in Loudoun county right now. In many markets, that might be considered a sellers market, but he views it as more of a balanced market because there is more churn in the area due to the transient nature of those who are constantly relocating into and out of the area.
Many industry experts are expecting a dramatic rise in foreclosures over the coming months as Freddie and Fannie have recently halted their foreclosure moratoriums. As this action trickles down to the field, six months worth of foreclosures could flood the market.
What’s going on in your area and how are foreclosures affecting your market?