Foreclosures are on people's minds. The big question is: How many are going to hit the market?
According to REIN, which covers about 90% of all sales, they stated that in June 2008 foreclosures were 5.25% of the market. Not HUGE at all. Then the rate steadily went UP and then came back DOWN, not to 5%, but down.
July 08: 4.79%
So locally, over a years period, we have seen it go up from about 5% to 15%. Is that bad? Look at it this way: we have 3x as many foreclosures on the market. In Northern VA, foreclosures were roughly 50% of all sales. What about FL and CA?
Foreclosures have a BIG IMPACT on Median Sales Price. Our median sales price is 210K. We need to come down another 10% in order to get in front of this thing. It hurts, but it is true.
We are in a NEW MARKET. It is no longer 2004,2005, or 2006. We have to make adjustments.