Short-sales make up 20 percent of Loudoun County homes for sale. As in, for every five “For Sale” signs you see, one of them is a short-sale.
What does that mean in regards to the Loudoun County housing market?
First, let’s go back to August 2009… In a post entitled, “Short-Sales Wear the Crown in Loudoun County”, I ran the numbers and the percentage of short-sales to total homes for sale in Loudoun County was the same - 20%.
Based on a comparison of August 2009 and today, it means things are not getting worse. But they’re not getting better either.
It also means that buyers should know exactly what they’re getting themselves into when buying a home in the area and have a real estate agent that is experienced in short-sales and can walk them through every step of the process.
When will see a decline in short-sales and a return to a “normal” market?
Once the general economy stabilizes and prices go up. Many people are underwater on their homes and can’t afford to come to the settlement table with a check for $20K, $50K or even $200K+. This means that their options are to 1) stay in the home until prices appreciate and/or they have the money to cover the loss, 2) let the property go into foreclosure or 3) try to negotiate a short-sale with the bank(s).