Tuesday, June 1, 2010

Foreclosures in the Charlottesville Area, First Quarter 2010 - Up 72% Over Q1 2009

*Update at bottom.

That's an attention-getting headline, but it's also the way the Virginia Association of Realtors is charting foreclosures.  See Figure 1.

Not only has foreclosure activity increased, but because sales remain low, the number wipes out any progress in lowering area inventory.  The Cville Area had 306 foreclosures in Q1There were 436 sales during Q1 2010 The foreclosure number is 71.18% of the "sold" number: these properties are now part of the "shadow inventory" that will appear for resale, cheaper, over the next 18 months, adding to the glut of homes already available.

Charlottesville had the second highest increase in the State, behind the New River Valley for YOY comparison; the NRV, home of Virginia Tech, had a 100% increase.  That area has a higher unemployment rate (though much lower home prices; higher priced Option ARMs are a growing problem in the Cville area).

The third chart  shows 2009 foreclosures by Quarter.  Q1 2010 was little changed from Q3 and Q43. 2009.  

Figure 1: Percent Change (click for larger image in new window)

Figure 2 Foreclosures Q1 2010 (click for larger image in new window)

Figure 3 Forcelosures 2009 (click for larger image in new window)
*UPDATE: 6/1 pm  NBC29 picks up the story.  They forgot to link, but they have an interview with Jim of RealCentralVA and the local sheriff.

FOR FORECLOSURE HELP, see links in blog's sidebar.

Charts copyright Virginia Association of Realtors; available here.
A NYTimes article highlights the hundreds of thousands of people who have stopped paying their mortgages, no stigma, and stay put for and average of 18 months. 

No comments: