Bank-owned and short-sale properties currently make up 25 percent of the active real estate inventory in Loudoun County (including new homes/new construction lots for sale).
Is this is a good or bad thing or neither?
Back in October of 2008, the percentage of bank-owned and short-sale properties as compared to the total inventory was 39%. But that percentage has since dropped and has been holding steady around 25 percent for some time now.
That's a good thing in one way because we've seen the percentage drop and we're not seeing an increase (which would mean further downward price pressure). It's not a good thing in another way because we're not seeing that percentage continue to drop below 25 percent (which is key to a real recovery).
Another good thing is that the overall real estate inventory is Loudoun is dropping and is at its lowest level in years. I'm just curious as to if/when the next wave of foreclosures will come and how big it will be if it does. That depends on a lot of things including interest rates, the stimulus bill's effectiveness, loan modifications, the overall economy, etc.
So basically, we're better off than we were last year and we're doing ok for now. But cross your fingers.