I have been tracking a small group of foreclosure and short sale properties located in the West Springfield area (zip code 22152) for the last few months to see how low prices might go. This area has mature neighborhoods with loads of trees, is in the popular West Springfield HS pyramid and has easy access to public transportation for DC commuters, which is why I selected it to watch.
Last month two of the properties had been withdrawn and another one had finally sold $86K below the original list price with an additional $10,000 in closing cost assistance.
This month the chart hasn't changed much. Another property withdrawn, one under contract and another one sold. While I have been tracking this group I have also been following up on the mega auction from last month and will have some updated results to post soon. Just as the homes in West Springfield have been slow to move so were the homes at the auction. I will say that one house in Alexandria VA which had an auction bid of $255,000 ending up selling for $340,000. 
Having helped a buyer purchase a foreclosure recently and with other buyers having their offers rejected, it reminds me that buying a foreclosure property is not for the faint of heart or for those who want a fast process. First getting in touch with the agent who has the property listed can often be difficult. Then once you have your offer together (remember you are buying the home "AS IS") waiting for the bank to respond can take 7 to 10 days, if you are lucky. Banks are not giving the homes away. They will negotatiate for every nickel on the deal so you must have fortitude to stick it out.
For more information on Northern Virginia Foreclosures:
October Report for West Springfield Foreclosures
September Report for West Springfield Foreclosures
Beware of Short Sale Surprises
Can Your Find Me a Really Good Foreclosure Deal
©Copyright 2007. All rights reserved. Northern Virginia Real Estate , Cindy Jones, Associate Broker, RE/MAX Allegiance
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