I just wrote a post at LoCoMusings about how much short sales and foreclosures were affecting the real estate market in Loudoun County. Rather than rehash all of that here, you can jump over there to see how different parts of the county are affected compared to the market for the county as a whole (real estate is local, right?). Here’s the chart for how much of the market across the county is made up of ‘distressed properties’, meaning short sales and foreclosures, compared to ‘normal’ listings, which are traditional owner sales.
So the vast majority of sales are not distressed. And the percentage of foreclosure (bank owned) homes is pretty low. I’d venture to guess that this is surprising to most of my readers, especially when the mainstream media is constantly harping on foreclosure properties ~~short sales make up much more of our market here. Let’s take a look at property types and see if these percentages are the same for different home types…
Aha! Now we can see where the issues are. While 82% of active single family home listings are ‘normal’ sales (not a short sale or a foreclosure), only 58% of condo listings are ‘normal’. What else do I notice?
- 32% of townhome listings are short sales, compared to 20% across all listing types, even though the foreclosure percentage is the same.
- Detached/ single family homes are much less likely to be distressed, either as a short sale or bank owned.
- Condo listings are taking a beating across the board, with a higher percentage of foreclosures AND short sales.
So, if you are a Loudoun County single family homeowner, you may not have as many foreclosure/short sale homes affecting value in your neighborhood. If you have a townhome or condo, though, you likely do. If you are a potential homebuyer, please get some guidance on the pros and cons of buying a bank owned home or on putting in an offer on a short sale before you start looking at homes.