The Winchester, VA real estate market had a good summer with 411 sales over that third quarter, but there is a disturbing trend in those numbers. Distressed properties have been a steady decline since late 2012, but the percentage of distressed properties in the third quarter rose to 20%.
That is the highest percentage in 2013. It wouldn't be so concerning if that trend was heavy on the short sale side, but it's actually weighted on the foreclosure side. Short sales made up 9% of the total 3rd quarter sales, and foreclosures made up 11% of the sales.
Foreclosures have been a steady decline for nearly a year. National statistics of homeowners who are late on their mortgages fell to 1.91% in 2012. That is down from 3.83% in 2009. That looks like a good trend, but the percentage in a healthy economy is still below 1%. There is still ground to be made up since the market collapse in 2008.
The Winchester, VA real estate market is still improving. Another quarter should reveal if the distressed property increase is a trend or a blimp on the horizon. Stay tuned for the fourth quarter.