| Third-quarter foreclosure sales lagging in region | |||
| Foreclosure Sales | Annual change | Average sale | |
| D.C. | 126 | -37% | $292,648 |
| Maryland | 2,338 | -17% | $207,544 |
| Virginia | 4,147 | -31% | $229,933 |
| Source: RealtyTrac | |||
A new report shows sales of foreclosed homes have dropped dramatically in the Washington region and nationwide, indicating the national investigation into foreclosure processing is starting to chill the housing market. Foreclosure sales in the District fell by 37 percent during the third quarter, ending Sept. 30, higher than the 31 percent nationwide drop, according to RealtyTrac, a foreclosure-tracking firm in Irvine, Calif. Virginia posted a 31 percent drop, while Maryland saw one of the smaller drops in the country, averaging a decrease of 17 percent.
“This is largely the result of the moratorium put in place regarding foreclosures and it relates to the so-called robosigning that came to light earlier this year,” said Anirban Basu, CEO of Sage Policy Group in Baltimore.
In addition, foreclosed homes in the region are accounting for fewer home sales than the rest of the country. Just 8 percent of homes in D.C. and 17 percent of homes in Maryland were in foreclosure.
Virginia’s rate of foreclosure sales was two points under the national average of 25 percent.
Nevada had the highest percentage in the country at 54 percent.
Analysts say progress in the housing market will continue to be halted well into next year as tens of thousands of foreclosure filings are analyzed across the country. Attorneys are looking for cases in which a homeowner may have been illegally foreclosed upon in banks’ mad rush to process filings.
James J. Saccacio, CEO of RealtyTrac, said the latest report showing lagging demand is just the tip of the iceberg, noting that much of the third quarter demand was also affected by the expiration of the homebuyer tax credit this summer.
In other areas, the Washington region has bucked the national trend. Its third-quarter foreclosure filings this year showed a slowdown while most of the nation’s major metropolitan areas saw filings rise.
Home prices in the Washington area also increased during the third quarter while the national market weakened.
