Nationwide, foreclosures surged more than 7 percent in May, but foreclosures dropped dramatically in Maryland and Virginia after a spike in both states the month before.
The number of properties with foreclosure filings fell 61.15 percent in Maryland, moving the state from the sixth-highest place for foreclosure rates in April down to 22nd place last month.
Irvine, Calif.-based RealtyTrac, a Web-based foreclosure listing company that releases monthly foreclosure data, reported its May figures Friday.
Virginia, which ranked 12th in April for foreclosure rates, ranked 15th in May after an overall 7.65 percent drop in foreclosure filings.
The most significant decrease took place in Prince George’s County, where foreclosure filings plunged 78.79 percent from 1,938 filings in April to 411 filings in May. For the first time in several months, the county dropped from the highest foreclosure rate in the state to sixth place.
Montgomery County saw a similar dip in the number of filings. In April the county had 1,146 properties with filings, and in May it registered 399 properties, a 65.18 percent drop.
The decrease in foreclosures should have an “almost immediate effect” on the market as the supply drops, said Donna Evers, president and broker of Evers & Company Real Estate. Foreclosure properties, typically priced lower, “tug at the value of non-foreclosure properties,” she said.
Prince William and Loudoun counties, which have also been hit hard by the foreclosure crisis, witnessed a decrease in foreclosures of 15.47 percent and 9.19 percent, respectively. The jurisdictions still had relatively high rates, coming in first and second in the state, respectively. Fairfax County saw a 12.68 percent drop, from 1,404 filings to 1,226 filings. Arlington County had a slight increase, from 75 to 80 filings, and Alexandria had a slight decrease, from 71 to 68 filings.
But the District, which, unlike the other areas, had fewer foreclosure filings in April, had a 37.81 spike in filings in May, from 283 filings to 390 filings.
The generally positive news may be short-lived. Evers said that according to economists, it’s possible that many teaser rates on mortgages may be adjusted for the first time this summer, leading to more foreclosures. The exact number is unknown.
“I fully expect things to bump up and down for the next six months,” said Dennis Melby, a Realtor with Long & Foster Real Estate Inc. and president of the Greater Capital Area Association of Realtors.
