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Fauquier County Home Values Show A “Momentary” Stabilization
According to a third-quarter report by “Zillow,” American single-family homeowners with mortgages are finding some relief in the data that shows those homeowners that are “underwater” with their mortgage dropped approximately 10% over second-quarter 2009 data. Surly governmental authorities and homeowners hope that this is a trend and not an anomaly. The same report goes further in stating that “year over year values” dropped for the 11th consecutive quarter at an annual rate of 6.9%, nationally reviewing 156 metropolitan areas.
Reviewing Warrenton and Fauquier County data, we see a ‘local’ focus and one that reaches into the pockets of each resident. Having been shielded by “Northern Virginia,” we enjoyed the 14 years of meteoric price appreciation however, we now find that our home values have decreased for 15 consecutive quarters, with the median sales price dropping 15.7% since 2008, year to date. This coupled with the 24% drop, 2007 versus 2008 sold prices, the cumulative affect in painful.
Let us look in the rear view mirror. Median home sales prices were:
| 2005 | $419,900 |
| 2006 | $399,900 |
| 2007 | $375,000 |
| 2008 | $285,000 |
| 2009* | $250,000 |
From a high of $419,900 in 2005, we now find our median sales price at $250,000. Including this $169,900 decrease in the “median sold price” since 2005 into our thought processes, why do we question why we have so many foreclosures and short sales in our area, and will they be increasing?
Yes, the $8,000 first time buyer’s tax credit has helped, and will continue to help in 2010, at a decreasing rate, as will the $6,500 “move-up buyer’s tax credit,” which expires April 30, 2010, but we must rely on those in the data below. Those that purchased in 2000 – 2004 (median sold price shown), and did not take out a home equity loan will spur sales
| 2000 | $176,000 |
| 2001 | $213,150 |
| 2002 | $250,000 |
| 2003 | $284,900 |
| 2004 | $347,000 |
Hopefully, they will lead us into a “housing recovery,” as we see more of these “sellers’ entering today’s real estate market. Stay tuned, let the economy roar.
Don Khoury
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