Wednesday, November 30, 2011

Virginia Is Now 7th Worst State For Owners Owing More Than House Is Worth

Buyers can get overwhelmed by constant local and national data.  But what remains is this: the only consistency in the Charlottesville Area housing market for the past four+ years has been that prices keep declining.   Caveat Emptor.

The dwindling pool of willing, qualified buyers and trapped sellers won't be helped by today's data:

Approximately 30% of Virginia mortgage holders are at or a hairsbreadth from being underwater.  The Commonwealth's ranking rose has gotten worse since the 2nd Quarter of 2011, when it was #8.  

Core Logic reports that, nationally, underwater homeowners declined from Q2 to Q3--because 260,000+  homes were lost to foreclosure.  That's not progress.

Many Charlottesville Area homeowners are handicapped by effective negative equity, which is why the market may stagnate for years.  The major price declines just haven't abated during prime selling season. An earlier post details the problems that come with negative equity.  The data helps explain why foreclosures--and foreclosures at the high end--keep rising in this area. 

Related: RealCentralVA has a long post on looking at national data in context to the local market.  Most pertinent, IOHO, part for Sellers: the Realtor wondering where the influx of high paying jobs is....

Click on image for larger version in new window.  Source: Core Logic via Calculated Risk.

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