Friday, June 10, 2011

Charlottesville Foreclosures Rise 25% in 2011 Compared to Same Time in 2010

In the same week that home price guru Rober Shiller said it wouldn't surprise him if home prices dropped another 10-25%, new numbers show that the Charlottesville area foreclosure rate has increased 25% over the same time last year.

NBC29 has a text version as well as a video.  The current CAAR president, Barbara McMurry, is quoted as saying she's sure the market will "survive" (has anybody ever suggested it will not?) while Chamber of Commerce head Timothy Hulbert notes that foreclosures make home prices lower for buyers.  Good for buyers, bad for sellers and owners.

Nearly 30% of all Virginia mortgage holders are at or near negative equity--they owe more than the house is currently worth.   Negative equity and inability to sell will invariably lead to more short sales, foreclosures, strategic defaults.  We're not done with our "correction," and won't be, for a while.

Additionally, new data shows how much financial difficulty many Virginia families are having in this economy.

In October 2010, the year-over-year rise was 225%.  Currently, sales in this "Spring selling season" aren't what most have hoped for...and the mid-to-high end of the market, and the "move up" market are having trouble.  Sales actually declined from April to May...that's moving in the wrong direction, since they typically rise through Summer.  (More on this the week of June 13.)

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