In 2008, almost the only properties selling were REOs.
By 2009/2010, the banks had seen the value in working with short sales and had enough trained staff that they were able to start processing the requests in enough time to avoid foreclosure and actually get to the closing table.
In order for production builders to stay in business, they had to keep building, but they had to adjust their price and product. This meant they needed to renegotiate deals with investors, the localities and their lenders. In 2009 we started to see these entities also face the reality of the market, and by 2010 new homes sales were once again returning to the market in force.
Traditional sellers also realized they had to face reality. Market recovery was going to take many years, and recognizing that 2005/2006 values are never likely to return (when you consider inflation). In 2010, traditional resales noticeably re-entered in the market, but hoping to get every dollar they could, these sellers did all they could to make buying their home an advantage - the homes were well prepared for the market, well priced and owners were flexible on terms.
I was pleased that in 2010, my business, and probably that of most local agents was about 15% REOs, 25% Short Sales, 25% New Construction, 35% Resales... nearly balanced between "normal" sales (New Construction and Resales) and "distress" sales (REOs and Short Sales). The market in 2011 continues to show signs of recovery. Inventory is currently very tight. Here are the stats for the last 90 days for Leesburg VA. Check them out:
368 Homes on the market right now
269 Homes under contract right now
195 Homes sold in the last 90 days
This paints the picture that we have less than a 6 month inventory of homes available, which is great. What also is encouraging is the "Types" of sales that are in the marketplace right now.
REOs represent 4% of the Homes Available and 17% of the Sales in the last 90 days
Short Sales represent 12% of the Homes Available and 18% of the Sales in the last 90 days
It's a good sign that distress sales are continuing to decrease in the market. In some neighborhoods, particularly those built during the height of the market, distress sales continue to dominate. However, in other neighborhoods, stability is returning.
Wondering how you're neighborhood is faring? Get a free automated report at:
Notes about Neighborhood Sales Reports: - You must include your address and info about your property so the program can pull appropriate comps.
- You must include a valid email address - the report takes a few minutes and is emailed to you.
- You will NOT receive any spam... no bulk emails at all. Promise.
- It's automated, so it's not perfect.... if it doesn't make sense, please contact me directly for more information.
- This program works only in the Northern Virginia area.
For a personalized report by a human with a brain, don't hesitate to reach out to me. I am here to help you evaluate your circumstances and make good decisions for you and your family.
Vicky Chrisner
703.669.3142
