Some Northern Virginia home buyers are especially interested in the foreclosure opportunities. And there are still opportunities, but on the other hand, maybe not as many.
Previously we have talked about the national foreclosure stats showing a very heavy concentration of the foreclosures in a small number of states.
This has been the pattern for about eight straight months now.
As noted by RealtyTrac.com, more than half of October’s foreclosure-related activity came from 4 states:
- California
- Florida
- Illinois
- Michigan
In addition to the above states, rounding out the Top 10 states for total foreclosure activity we also have Arizona, Georgia, Texas, Ohio, New Jersey, and Maryland.
Foreclosures are up 19 percent from last October and that is not good. But on the bright side, the RealtyTrac report reveals two positive developments:
- Foreclosure activity is down 3 percent from last month
- Foreclosures per household decreased in 9 of the 10 most heavily concentrated states
Nevada has been hard hit, but its foreclosure pace is down 4% from last year. This is a real positive for Nevada because it has led the nation in foreclosure-related activity. Until last month, Nevada’s year-to-year foreclosure rate hadn’t dropped off in nearly 4 years.
From my vantages point here in Northern Virginia, it seems way soon to say that the foreclosure deals are dwindling, but it may also be true that the really good deals are harder to come by. Between first-time buyers and honest-to-goodness investors, a lot of property has been sold.
According to one report, distressed homes account for nearly one-third of home resale activity.
Of course, buying a foreclosure in definitely not for everyone. There are lots of potential complications that I let my buyers know about, so that they can make informed choices. For example, you have to be careful that the cost of repairs and other “rehabing” issues does not negate the potential savings. There are also time issues to contend with, as well as other potential administrative complications.
If foreclosures are interesting to you, take a look at the foreclosure heat maps on the RealtyTrac website. If you like what you see, ask your real estate agent about it, and if you are situated in the Northern Virginia area, or moving here, of course let me know how I can help.
