803 DULLES CT
HERNDON, VA 20170
List Price: $229,900
Prior Sale: $499,500 07/28/2005
Listing Date: 04/08/08
-54.0%
804 SYCAMORE CT
HERNDON, VA 20170
List Price: $208,900
Prior Sale: $420,000 06/30/2006
Listing Date: 04/09/08
-50.3%
3467 GALLOWS RD
FALLS CHURCH, VA 22042
List Price: $299,900
Prior Sale: $600,000 12/01/2006
Listing Date: 04/11/08
-50.0%
12300 TIGERS EYE CT
RESTON, VA 20191
List Price: $237,500
Prior Sale: $460,000 02/28/2006
Listing Date: 04/01/08
-48.4%
12000 MARKET ST #464
RESTON, VA 20190
List Price: $232,500
Prior Sale: $449,900 06/23/2005
Listing Date: 04/10/08
-48.3%
2022 MALEADY DR
HERNDON, VA 20170
List Price: $277,900
Prior Sale: $511,000 07/20/2005
Listing Date: 04/08/08
-45.6%
351 HILLWOOD CT
HERNDON, VA 20170
List Price: $289,900
Prior Sale: $529,000 06/01/2006
Listing Date: 04/11/08
-45.2%
See Fairfax County 4/14/2008 for more comparisons from this week's listings.
(Links by FranklyMLS.com)
Monday, April 14, 2008
Fairfax County -- On the Market
Posted by Harriet at 12:02 AM
Subscribe to:
Post Comments (Atom)
13 comments:
Every time I see a home listed for less than 50% of its previous sales price, I cannot help but wonder "what were the banks thinking!" We're finally getting back to sane lending practices. Soon they'll have the jumbo down payment back to the historical norm (25%).
But this will slow the velocity of money. Its going to be an interestng 2009.
Got Popcorn?
Neil
A few random thoughts...
With so many examples of falling prices, like those shown in this Fairfax Co. post, it's hard to understand how some people still continue to deny that we had a housing bubble. Amazing!
As expected, the list of large declines continues to grow each month as does the magnitude of such declines. In this list alone, there are 29 properties in Fairfax with declines greater than 30%. In the Fairfax list from last August there were only 5 over 30% off.
We are now in the self-perpetuating negative feedback cycle where price declines cause more foreclosure and short-sales, which in turn cause even lower prices. With such a large number of months inventory, this negative feedback cycle won't be ending anytime soon.
With all the talk of the calamity of falling prices and the need for massive government intervention, it is important to note that in most jurisdictions in northern Virginia, prices are still above 2004 levels (well, at least for now).
March 2008 marked the first March since 2001 that average prices in NoVA fell from the immediately preceeding February. March 2008 prices were lower than February 2008 and January 2008. Winter normally has the lowest prices of the year, but maybe this year it will be the opposite of that with prices continuing to fall each and every month.
Is it possible to show price drops in Airfax that are not Herndond or Sterling? those areas are pretty immigrant centric and are caving first but not only. i.e. in FAir Lakes a townhome sold for $389k (I think). At peak it sold around
$550k. That seems significant.
I have also noticed a real stickiness for SF home prices in Fairfax/C'ville/Chantilly at around the $500k -$525k level. No one is willing ot break the barrier for SF homes at this point yet. When that happens it seems like the free fall will start in earnest.
The reason the prices are sticking is because most sellers right now bought during the boom. They literally cant sell it for less.
Why they are selling a home after living in it less than 2 years makes no sense to me.
As soon as a home purchased before the boom comes on the market and sells at a reasonable price, the others will likely foreclose.
Ive already seen this in some listings. I saw a townhome purchased for 580k in 06 on sale for 550, then one just like it sold for 469K and the listing disappeared. A few weeks later, bank owned selling for 500k. My guess is its at 450k now, havent checked.
wow
check out mls:FX6725342
http://franklymls.com/FX6725342
sold for 650 11 months ago! now down to 350. (your spreadsheet has a similar neighbor from 460 to 350 now)
i know it's a short sale, cant really buy it for that, yada yada. what were they thinking!
this new townhome community is right off edsall road/395, so it's creeping inwards lanconites!
for a new (which is a negative imho) garage townhome, prolly free internet with panera right next to you, direct access to hov, not bad.
John said:
We are now in the self-perpetuating negative feedback cycle where price declines cause more foreclosure and short-sales, which in turn cause even lower prices. With such a large number of months inventory, this negative feedback cycle won't be ending anytime soon.
Well said. Your forgot the substitution effect too. ;)
Doug said:
Why they are selling a home after living in it less than 2 years makes no sense to me.
Everywhere! That's a mix of the 2 year tax rule and the bubble mania fadding. My wife and I toured ten open houses this weekend. Of those eight were obvious 'get rich of off real estate' types.
The two we liked were owned by long time tenants that were moving on. (One passed away, at the hospital. The other home was owned by a couple that obviously now needs assisted living.)
We'll bid on zero. Its not time yet.
Got Popcorn?
Neil
tenants=residents oops...
"I have also noticed a real stickiness for SF home prices in Fairfax/C'ville/Chantilly at around the $500k -$525k level. No one is willing ot break the barrier for SF homes at this point yet. When that happens it seems like the free fall will start in earnest."
These sellers are also Banking on the "Spring Market".
Keep your eye on these houses and check back on them in July/August.
They'll either be in foreclosure or under the 500K mark.
By then, we'll have confirmed the 3rd "dead" Spring market in the DC Metro area.
Hi Tabitha,
I've read this post on and off, and I wanted to respond to your question about the short sale. We are on the other end right now -- my husband is military, we bought when we moved here (2005), planned to be here 3-4 years then get out of the military. Housing market tanked, doesn't look like a great time to look for a new job for my husband, so we decided to stay in --hence military orders to CA. Anyway, we live in Lorton, huge price drops, and we are selling for 125 grand less than what we bought. We are extremely aware of the difference and I think anyone who is selling will be sweating it as well. Depending on which bank it is, they just could be swamped right now, they could be trying to negotiate with a second loan, they could be still waiting on the Broker's Price Opinion, but I doubt they are hoping for higher offers. I know that we are VERY fortunate to have gotten an offer at all, we've had 2 other showings in a month and both declined because it is a short sale and they don't want to have to wait for the bank to decide. Typically the banks have a Loss Mitigator who works out the details with the seller as to what they have to pay back. It is usually 50 percent of the difference, though I have heard as low as 10 percent. But the things the hold up the bank are usually incomplete paperwork, the BPO, or if it's my bank (NAVY FED) the committee meets only every two weeks to decide whether to accept a short sale!
anyone have a guess on how much below list price these will sell for?
Doug,
The homes I have been looking at have not been recent purchases. I think it more of a pshycological issue with the sellers. They think the house they bought for $150k in 1999 is going to sell for $575 and they will not change the price no matter what. A few may be different, but homes have been on the list a long time with little to no price adjustments. They are not going to "give the house away"
Doug said:
Why they are selling a home after living in it less than 2 years makes no sense to me.
As soon as a home purchased before the boom comes on the market and sells at a reasonable price, the others will likely foreclose.
I still am puzzled by the property I am going to settle on at the end of the month. Sold in 12/06 for $240K. Within a year according to my research it was up for a short sale for $200K! Within months it turned up bank owned. I am buying it for $157K!
Even my realtor is puzzled as to all the what appears to be recent upgrades. (Less than 3 years old we are guessing)
I guess fortunes change for some. I know it could happen to me as well. But am trying to have at least a years cushion in savings at least. But I am lucky that I had the money saved from selling my Herndon TH at the peak of the market.
About your latter comment, this was giving me pause when I was looking. Lucky so far the comps are averaging $180K for just this year.
wannabuy, I have been told the best motivators for sellers is the 3 D's - death, divorce, distress. I know the later two where my motivations to sell my Herndon TH. For the way the community has turned there, glad that I was able to get out with positive money. It broke my heart to drive by the old place a couple weeks ago to see the front landscaping that I had done to give the place curb appeal has been trashed.
sara, good luck on everything. Understand the safety of staying with a job that you know is a sure thing. Instead of moving in to a new home in Reston in May, I should be packing things up for a move to Chicago right now. But the job market there tanked.
Thanks for your insights on short sales. I think that with the heated market we had there are way too many properties out there that have a second mortgage with a lender that is hoping against hope to get their money back.
pat, I have seen some places that have been listed for over 400+ days. They are hoping that they get their price. A couple at the Foxcroft in Fairfax City was vacant when I visited two months ago.
sara--
Sorry, did not see your post til just now. That is excellent hard information, and I appreciate it so much. I am so sorry for your situation...we're military, too, and we have both sides of the story all around us: the people who were stationed in Quantico when we were back in 2001, who bought then and sold in 2004/2005 for a $300K-$400K profit...then the folks who moved back here when we did in 2006 and bought and are facing bankruptcy now because of new PCS orders...our landlord is Air Force, and they bought in 2003, couldn't sell in the cooling Manassas market in 2006, rented to us, and now had to stay in for another D.C. tour because in order to refinance their ARM, they had to say this house was their "primary residence." Hence, we get kicked out in June.
My husband is hoping to get out next spring, but we, too, are afraid of the economy, and are worried about buying if he has to stay in...our hope is that, if necessary, he could PCA somewhere close by, like the Pentagon or Quantico, but you just never know where they'll send you, no matter what...
We're using Navy Fed for our mortgage, but the short sale banks we need approval from are Indymacs and Citi. Well, we'll know by May 1. I pray your house goes to closing...I know it is so hard, but the most important thing is to GET RID OF THE HOUSE NOW. We had a house we couldn't sell for over 2 years, and it almost completely destroyed us, so we know the pressure. The hardest lesson we learned through that is to just do the suffering up front--don't hold out for a miracle, just cut your losses and go on.
Semper Fi...
Post a Comment