Real Estate Pro Articles

Sales Percentage of Bank and VA Foreclosure Homes Rise

[Valid RSS feed]  Category Rss Feed -
By : John Cutts    99 or more times read
The percentage of VA foreclosure homes and other foreclosed properties which accounts for total housing unit sales in Richmond, Virginia, increased last year. The percentage has been increasing in the past three years, housing data showed. In 2010, more than 20% of total home sales were attributed to foreclosures.

Foreclosed homes in Richmond accounted for 22.2% of total residential properties sold in the metro area in 2010. In 2009, the percentage was 16.6%, while in 2008, 7.5% of total sales were attributed to distressed or foreclosed properties. Housing sales data showed that 2,745 foreclosed properties were sold in the area last year. Foreclosed home prices also recorded a huge difference compared with regular dwellings.

The average rate of foreclosures that were sold in the metro area in 2010 was a little over $156,000. The price was 35% lower than the average selling price of non-foreclosed houses. Compared with the number of foreclosed homes in Virginia that accounted for total state housing sales last year, Richmond still recorded a lower percentage. The same is true when the metro area percentage is compared with nationwide foreclosure sales.

However, both statewide and nationwide percentages for foreclosed property sales declined in 2010, as opposed to Richmond, which posted an increase. For the whole state, a total of 18,188 foreclosed dwellings, including VA foreclosure homes, were sold last year, representing 24.8% of total housing units sold for the whole year. The figure represents a decline compared with 2009, when foreclosures accounted for 26.6% of total home sales.

The average selling price of homes foreclosure for sale in Virginia last year was $228,564, cheaper than non-foreclosed dwellings by 30.4%. Based on metro area-statewide comparisons, housing industry analysts claimed that Richmond is still experiencing increasing foreclosure sales and activities which showed that the region has yet to reach the peak of the foreclosure crisis. They added that, although Richmond is doing better than national averages, foreclosed properties still took a huge chunk out of home builders' market share.

Analysts also stated that as long as VA foreclosure homes and other foreclosed properties remain high in Richmond, the demand for new houses will continue to decline. They also stated that the market should not expect much activity from home builders this year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles