The report concludes that this Area Remains a Buyer's Market. No kidding. The value of any property is only what a buyer is willing to pay. And there remain fewer buyers here than ever. A seller can point to comparables or trends or history or tax assessments or appraisals, but an asking price means nothing if there is not a buyer agreeing to it. As stated recently, this blog expects the bottom in 2015.
Number of Home Sales in Central Virginia Remain Down 50% From Bubble Peak
Sales remain low despite hundreds of new homes and units built, as well as condo conversions. CAAR no longer gives historical sales data: 2010 and 2011 numbers come from this year's report; the rest of the numbers appear here.
This data, from the current report, is for all property types (condo, townhouse, single family); median price declines vary more when parsed by individual property type. A future post will contain more info on price decreases. Buyers have to expect to stay put for 7-10 years because even small decreases in prices put recent buyers underwater - owing more than the house is worth.
2011 saw 440 foreclosure re-sales and Short Sales (bank agrees to take less than what seller owes). This is 19% of total sales of 2300 for the area. According to the 2011 CAAR recap, 2011 foreclosure resales rose over 2010, and Short Sales nearly doubled from 2010: 76 to 112.
Often, short sales don't work, however: Pricing. Banks and buyers can't agree on the value. 118 listings marked as "short sales" expired in the MLS, unsold, as of December 31. They'll be back--or they'll turn into foreclosures.
Median price for foreclosure resales: $130,000
Median price for short sales: $211,000
Median price for "traditional" sales: $265,000
Despite banks pulling way back on foreclosure filings in 2011 due to "robosigning" and MERS title issues, the rate of homes lost to foreclosures increased every month in 2011 over 2010.
Short Sale and Foreclosure listings:
Distressed v. Traditional sales:
- For Sellers: trying to "wait out the market" has proven a failed strategy.
- For Buyers: a house is not an investment.
- The housing market in this area continues to struggle.
- So for those who want to buy, offer accordingly.
Images copyright CAAR. Top graph from this blog.