The Big Unknown

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%
August: 6.53%
September: 8.23%
October: 9.05%
November: 13.09%
December: 14.50%
January: 19.13%
Feburary: 20.38%
April: 18.96%
May: 18.84%

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.