The DC Examiner reports that mortgage foreclosures declined 15% in Prince William County in May, in what may appear to be a long-awaited improvement in a key component of the residential real estate meltdown that started in 2005. While the county still retains the number one spot in mortgage foreclosures in the state, this is the first month where the number of foreclosures has declined.
Prince William and Loudoun counties, which have also been hit hard by the foreclosure crisis, witnessed a decrease in foreclosures of 15.47 percent and 9.19 percent, respectively. The jurisdictions still had relatively high rates, coming in first and second in the state, respectively.
Experts expect that foreclosure rates may not continuously decline from here on out, noting that many “teaser rates” are set to adjust later on this summer which may result in a new wave of foreclosures. Still, this should add to the recovery in the local residential real estate market.
The decrease in foreclosures should have an “almost immediate effect” on the market as the supply drops, said Donna Evers, president and broker of Evers & Company Real Estate. Foreclosure properties, typically priced lower, “tug at the value of non-foreclosure properties,” she said.
The data for this article coming from RealtyTrac for May, 2008 doesn’t quite seem to correlate with RealtyTrac’s publicly-available data for April, however. The article claims that Fairfax County’s rate declined 12.68 percent, from 1,404 filings to 1,226 but that Prince William and Loudoun were the number one and number two jurisdictions. With a 15.47% drop in Prince William’s previously reported statistics, Prince William County would have 1194 new foreclosures, making it the number two jurisdiction in foreclosures behind Fairfax County, not number one.
New foreclosures, April 2008 (RealtyTrac)
Several months ago the number of foreclosed homes in Prince William County dwarfed the number in Fairfax County. That may be changing rapidly, as the number of residential sales in Prince William County continues to outpace Fairfax County at the same time that the number of new foreclosures starts to fall behind this neighboring jurisdiction. There’s still quite a ways to go before we return to a healthy real estate market, but the indicators are consistently telling us that this isn’t all that far away.
The opinions expressed here are solely the views of the author, and not representative of the position of any organization, political party, doughnut shop, knitting guild, or waste recycling facility, but may be correctly attributed to the Vast Right-Wing Conspiracy. If anything in the above article has offended you, please click here to receive an immediate apology.