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Loudoun foreclosures drop 11 percent in August
The number of foreclosed Loudoun homes dipped by 11 percent in August from the previous month, according to data released by Fairfax-based Fulton Research and Consulting. Average sale prices also plunged – an indication that demand for real estate property might soon rebound.
Sterling was the hardest hit with 183 foreclosures; Leesburg followed with 99 foreclosures. Hamilton clocked only one foreclosure in August, according to California-based RealtyTrac.com.
Home sales continued to increase in August, as the total sales of single-family homes exceeded 500 for the fourth consecutive month, according to Fulton. Sterling (20164 ZIP code) fared well – the area had 119 percent more sales in August 2008 than last August.
“Sales of existing homes were higher this year in August than last year in every jurisdiction in Northern Virginia,” said Stephen Fuller, director of George Mason University's Center for Regional Analysis. “There are signs in the housing market that the bottom has been reached.”
Home values tumbled even further last month, with the average sale price declining 4.3 percent from July and 25 percent since August 2007. While increasing in the number of sales, Sterling 20164 also posted the lowest average sale price in the county. The average closing price for detached single-family homes was $472,564.
Decreasing home values could concern homeowners trying to sell, but slashing prices clears the available inventory. Home values will then rebound, Fuller said.
“When prices come down,” he added, “demand goes up.”
Loudoun's average sale price decreased by $90,500 in the last 12 months, according to Fulton. Slashed prices cut a home's time spent on the market. Ashburn homes, on average, sold in less than three months.
“A correction in the housing market should begin taking place in the second half of 2009, most certainly in 2010," Fuller said. "The [real estate] market is tied with the economy, and a consensus of global experts projects the second half of ’09 to be pretty healthy.”
Contact the writer at hhager@timespapers.com
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