AS OF TODAY, WHILE I CANNOT PREDICT TOMORROW OR NEXT MONTH, THERE ARE NOT AN EXTRAORDINARY NUMBER OF HOMES GOING TO FORECLOSURE IN LOUDOUN COUNTY, VIRGINIA

About an hour ago, I received a phone call from a reporter for the Washington Post attempting to
verify a rumor that she had heard that many homes were going to foreclosure in a community
in a luxury neighborhood in Ashburn in Loudoun County, Virginia. 

Sorry, Washington Post, our homes are not going to foreclosure in huge numbers.  I have not heard of an extraordinary number of home owners going under because their mortgage payments have increased beyond the owner's ability to pay. 

If that were the case, seems to me that prices for some of the homes on the market would be
reduced to sell.  I could have sold two homes last week if the sellers would have been reasonable.
Strangely enough, these were relocation company owned listings that are priced at the TOP of
our market.  WHAT ARE THEY THINKING??  Don't they have shareholders to account to??  Or,
perhaps they have simply just given up and, although the homes have been on the market for
250 to over 300 days, they are still priced at the TOP of the market.  Who is going to buy these
homes??  Surely not a buyer working with a buyer's agent who has access to competitive data. 

I suggested to the reporter for the Washington Post that she check the Complaint for Foreclosure
filings in Loudoun County.  Or, that perhaps she would get better information from some of the local
attorneys that handle foreclosures in this area.  Since she was following a rumor, seems to me that
a more authority source than a real estate broker would have more accurate information. 

I have had several contacts from home owners who are interested in selling because the payments
have gone up to a point where they have decided to consider selling.  That is not the same as
having to sell.  In fact, I can't recall any time in the past where I didn't get such contacts during the
years.  There is ALWAYS a percentage of our market that needs to sell.  What the reporter for
the Washington Post was trying to confirm is that many homes are going to foreclosure.  Not
that a number of home owners want or need to sell. 

I did search the tax records for the communities and found that, of 70 homes transferred in one of
the communities the reporter for the Washington Post named, 1 was transferred to a financial
institution and 3 were transferred to relocation companies, 2 to Cartus and one to Pru Relo. 

I searched another community in which the reporter for the Washington Post had questions and found that
8 properties out of 335 had gone to foreclosure.   Is that an extraordinary number?  Since this isn't
what I do, I don't really know. 

Seems to me that, if we were suffering an extraordinary number of foreclosures, prices would be
coming down dramatically.  This is not happening.

Number of homes sold in Loudoun County in 2007 - 872.  Includes detached, town homes and condominium homes.

Average Days of the Market - 135
Average List Price - $532,176
Average SOLD Price - $486,292
Percentage of List to SOLD price - 91.38%

DETACHED homes listed for sale.

I looked at the tax records for the homes that had been on the market for over 300-400 and more days.  The purchase price of these homes was in the $200Ks, $300Ks which doesn't reflect a home owner that MUST sell.  It would seem to reflect a home owner that wants top dollar for their home or more and until they get that price, they will keep it.  No problem with that. 

I have no doubt that there are home owners in this very popular residential area of Northern Virginia that would like to sell their home and have little to no equity to finance the sale.  Some may even have purchased with high interest 100% loans that are now higher than the start rate.  However, I do not see the evidence that the sky is falling in Northern Virginia.  But, what I see day to day is sellers who are not willing to sell for what buyers are willing to pay.  Now, I believe that it is the home owner's absolute right to price their home as they wish.  However, once they enter the market, they have to be ready to listen to that market, or the home will not sell if it is overpriced.  The old real estate axiom that there is a buyer for every home listed for sale, if the price is right, is absolutely correct. 

Let the market work it's magic.  Buyers will buy when prices are to their liking and they feel secure in the knowledge that, in time, they will have a wonderful home and a decent investment.