Despite having a thriving economy with a 3.5 percent unemployment rate, and more jobs than homes, buyer confidence has been mixed. Until this week, however, we are seeing the LLC investors stepping into the distressed market to capture excellent value within bank-owned inventory. Investors from New York City that previewed foreclosed investments in January 2008, have returned with confidence to actively acquire a diversified portfolio of properties. The restructuring of Fannie Mae and Freddie Mac  —and the added effect of lower mortgage rates — has indeed caused buyer confidence to increase. In Fairfax County, Va., bank-owned volume is at 417 units, while short sales are at 1,100 units.

Joe Henry

Realtor
joe.henry@longandfoster.com

 (571) 282-8249

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Bobby Korey

It is optimistic to assume that the correction will end by 2009. This has been a long overdue correction, which has been artificially re-routed by policymakers, and what should have taken one or two years to correct, will in effect take three or more years to correct.

I think homeowners, and investors should prepare realistically for a longer term hold for their real estate. In the long run though, the surge of immigration to US and the inflationary atmosphere of the world economics will ensure that real estate in the U.S. will definitely recover. In many areas, the properties are selling 30 percent below the replacement value of the properties, which is a temporary opportunity for the buyers and future investors, and a hardship for the homeowners and current investors.

But the correction will be a lot more dramatic in the years to come, before buyers, sitting in the sidelines, will step back in and reduce the market inventory. And investors with liquidity will permit their funds to be used for funding mortgages. Until then, fasten your seat belts, we are in for heavy turbulences!

Maryam Farzad

Have you noticed that CA accounted for 92 percent of the increase in foreclosure activity from July to August and also increased its share of Notices and REOs. If we stop calling this a national problem and loosen credit, maybe the buyers will step in.

Our banks have loaned out large amounts of money, with balloons and ARMs, which normal citizens can not pay back — and if you have a roof over your head be thankful. 

Julie

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John Beck

Prince William County, Virginia, Update 1/24/2009

Copyright (C) Deanna & Jim's GOLD Team, RE/MAX Olympic Realty

REO Activity in PW County, City of Manassas, City of Manassas Park

12/24/2008-1/23/2009 - Current Month

New Listings     Contracts      SOLD   Days on Mkt    Avg Price

175                       555             703      118                  $176K

11/24/2008-12/23/2008 - Month back

242                       577             806      112                  $182K

12/24/2007-1/23/2008 - Year back

144                       384             517      125                  $189K

Although up substantially from the same 31 day period in 2007-2008 volume this period (which included both Christmas and New Year holidays) has declined somewhat from the preceding 30-day period (which included the Thanksgiving holiday).  Buyer opportunities abound at much reduced prices.

Prince William County continues to be the hardest hit county in the Commonwealth of Virginia. It provides outstanding current value opportunities for (1) buyers previously priced out of the market, (2) investors looking a purchase properties with immediate positive cash flow, (3) buyers who bought BEFORE 2004 and did NOT refinance and need to move up.

Deanna & Jim's GOLD Team has handled aver 140 REO transactions in greater PW County area in the last 12 months.  Our 3-person team has over 21 years of licensed experience, an MBA, an MS in computers and an MA in psychology. We have handled over 350 transactions in the last 8 years. We are experts on REOs, short sales, resales, and purchases of residential real estate in Prince William County and surrounding areas of Fairfax, Loudoun, Stafford, and Faquier Counties.  

(All data from MRIS. Data believed accurate but should not be

relied upon without verification.)

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I just had the same conversation that I've alawys had with a buyer since I became a realtor.I showed this buyer the pertinent information to help him in his decision making.  Showed him how there is more inventory than there was last year at this time.  Told him that in order to sell a home a seller is going to have to make concessions (usually price) in order to attract a buyer in the current market.I simply showed him the facts.Last two years when I showed buyers the facts, the facts were there wasn't that many homes on the market to choose from.  I told them the reason was because there were many speculators in the market gobbling up inventory.  Showed them how there was a ton of pressure on the buyer because buyers were outbidding each other to the sellers benefit.I sold 4 mil worth of property last year and I bet I turned down about 3 mil more.  Why??  Some people were trying to max out their purchase and were not taking into consideration there other outlays that a larger home normally comes with.  Some were going to be stuck with a home that didn't meet their requirements for family size and when they went to trade up in a short time period, wouldn't be able to.  And other reasons as well.I know that some of those folks I turned down to work for probably went on and found another realtor and bought a home anyway.I personally do not have a good relationship with lenders.  I certainly do not 'steer' clients to any one lender over another.  If a client does not have a lender and isnt' pre qualified with a lender and wants to be referred to one, I tell them to open the yellow pages and start making calls.Not my job to pre-qual folks.  It's my job to deliver what the client wants.  A successful transaction of the home of their choosing.  I'm not a financial advisor, not a lender.I've practiced this way when the market was screaming hot, and continue to this day.Oh and sellers just love it when I tell them that I'll only take their listing if they put the offering price lower than current market.  Of the recent would be listing clients that told me to take a hike, all of their listings are still on the market.I offer a reduced commission rate to those sellers that will put their property on the market for less than market value.I get the angst angainst realtors here on this site.  I'm still befuddled that the perception is so harsh though.  I guess I blame it on newbie's and their brokers, if I'm going to blame anyone in my line of work.The consumer needs the most blame though.  It's still their choice to make.