In 2005 the real estate market was flying high in the Winchester, Va. area. We were invincible. Even the most incompetent real estate agent could sell a house. Bidding wars, escalation clauses and heart-pounding ratifications were the norm, and we loved it.
Then, September 2008 happened. The total sold properties in the Winchester/Frederick County area totaled 1,223 properties. Of that number, only 8 percent were foreclosed properties. Most clients had never heard of an REO (Real Estate Owned ? Lender Owned) property, and few buyers wanted a foreclosed house because of the stigma attached to it. Little did we know that the September downturn was about to become the new normal. The term ?distressed property? suddenly made headlines, but few non-real estate professionals even knew what that meant.
The collapse of the real estate market started a wave of foreclosures like the area had never seen before. Local real estate continued to sell at consistent numbers in 2009, but this time those sales included 36 percent REOs. Of the 1,329 sold properties, 470 were foreclosed properties. The greatest shock to the area was the location of these foreclosures. They were in every neighborhood. High-end neighborhoods took a hit right along with low-end neighborhoods. The sense of panic in the area was tangible.
The market continued to sell in high numbers, but so did REOs. In 2010, 1,419 properties sold. Unfortunately, 485 of those were foreclosures. That was a full 45 percent of sold properties. Insecurity abounded.
Short sales also started to show up on the local market. Most local agents had never listed or sold a short sale, and the learning curve was steep. Short sales made up a small portion of available properties in 2010. They would become a major source of listings and sales in the following years, but, in 2010, REOs ruled the Winchester/Frederick County market.
Finally, 2011 showed the first signs of positive change when relating to REOs. Of the 1,138 properties sold, only 30 percent were foreclosed homes. The total number of listings sold had dropped 19 percent from the previous year, which may have accounted for the drop, but that is undetermined.
At the midway point of 2012, the local market has closed 521 properties. The new wave of short sales has overtaken the number of foreclosures. ?As of June 1, 2012, 42 percent of closed properties have been distressed homes.? Of that number, 27 percent have been REOs and 15 percent have been short sales.
Current available listings include 513 properties. Of that number, REOs only make up 7 percent of total homes for sale. Short sales make up 11 percent. The total active distressed properties are up slightly from May. That might be a result of a dismal April sales volume. Properties that were in danger of becoming distressed properties in April may have fallen into that category by June.
The Winchester/Frederick County real estate market is heading in the right direction, but it has been a grueling climb out of the economic morass the nation has found itself in. The high number of distressed properties has given investors and bargain hunters many opportunities to purchase foreclosure homes at great discounts over the past four years. Those opportunities are not over yet, but that day is coming. If the market continues to move at its current pace, the local market will likely begin its move to a healthy balance sometime in the second quarter of 2013 or just beyond.
Written by Mike Cooper, Realtor?
Source: http://www.realestate.com/advice/foreclosure-homes-and-the-real-estate-market-in-winchester-va
snapdragon snapdragon kim jong ill dead wedding crashers next iron chef next iron chef aquamarine
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.