Local housing market remains jittery

Foreclosures and other distressed properties continue to comprise the largest share of real estate transactions in Culpeper County, and the market, though not stagnant, is weaker than last year.

Some good news is that Culpeper saw 40 percent fewer foreclosures in the first four months of this year, compared to the same period in 2009.

But yet the bleeding continues.

From January to April, 112 properties – 75 houses and 37 house lots – went into foreclosure. In the first four months of last year, that number was 187, according to an analysis of county tax records.

Like in past years, many of this year’s foreclosed homes occurred in the newer housing developments around town on streets like Holly Crest Drive, Cotton Tail Drive, Virginia Avenue and Horseshoe Court.

The county is still seeing its share of foreclosures, too.

“We’re still getting a lot of calls,” said Sam Aitken, director and founder of Culpeper County Development Corporation, a homelessness intervention group that has also provided housing counseling.

Last year, Aitken said he spoke with probably 1,000 local clients in some sort of housing distress.

Their top concern?

“That the banks won’t work with them,” he said, noting that most of the foreclosed properties in Culpeper were mortgaged through national banks and not local ones.

Stabilization?
The town of Culpeper’s federally funded Neighborhood Stabilization Program, launched in December with the purchase of a vacant house in default on Virginia Avenue – identified by town staff as having the highest percentage of foreclosures – has had some positive impact on the foreclosure situation, but not substantially.

The family chosen to buy the house on Virginia Avenue from the town has not closed on the property yet, said Aitken. Yet, it’s been months.

Again, it’s a waiting game.

The town is in the process of purchasing four townhouses on the same street, but they must be resold to qualified homebuyers by September, or the properties could revert back to the state, which administered the $1.2 million the town received through Congress’ Housing and Recovery Act.

“Somebody at the state said we’re doing better than anyone else in Virginia,” said Aitken. “But we still have a long way to go. Everything is just moving very, very slowly.”

Meanwhile, the CCDC homeless shelter on West Street stays full with folks who are either facing health problems or are out of work. The housing crisis has driven down housing costs in some cases so more affordable housing is out there, Aitken said. But because of the unemployment, a lot of people still can’t afford their own place.

“The incomes are way down,” said Aitken, who’s worked in housing intervention in Culpeper for 20-plus years.

What’s selling?
Culpeper Realtor Beverly Herdman with Keller Williams Realty said the first quarter of the year resulted in a “more balanced” market, with 118 homes sold in Culpeper.

Of those, 39 percent were traditional sales, 35 percent were foreclosures and 26 percent were short sales, in which a broker negotiates with the bank for a lower price than the original loan.

“That is great news, but we are not out of the woods yet,” said Herdman. “If you look at the total of foreclosures and short sales, distressed properties are still making up 61 percent of the market sales for the first quarter.”

The first quarter of 2009 saw 136 home sales in Culpeper County, she said, noting 18 percent were traditional sales, 71 percent were foreclosure and 11 percent short sales.

Herdman urged homeowners to know their options when it comes to a short sale.

“I strongly suggest homeowners that are struggling with their mortgage to seek advice about a loan modification or short sale,” she said.

Typically, once a home goes into foreclosure the bank is not interested in negotiating further.

Now is a great time to sell, according to Herdman, saying the housing inventory in Culpeper is way down.

“With a lack of inventory and the homebuyers’ tax credit through the end of April, it created quite a frenzy with multiple offers and homes being over bid,” she said.

Now that the tax credit deadline has expired things have cooled down.

“We have noticed that there has not been much of an urgency with multiple offers,” Herdman said. “Buyers are still frustrated with the lack of inventory. Now is definitely a great time – we need more inventory on the market.”

Home prices on the rise
That lack of available inventory appears to be driving up the selling prices in Culpeper County – at least for now.

The average selling price in April was $180,722 compared to $165,892 in April of last year, according to online real estate tracker Metropolitan Regional Information Systems. That’s about 9 percent more.

And yet, like Herdman said, less is selling as there is apparently less out there to sell.

In April, 40 homes sold in Culpeper County, compared to 50 last April.

One four-bedroom property sold for less than $100,000, according to MRIS. The majority of April’s home sales in Culpeper – nine in all – were four bedroom houses or larger that went for between $150,000 and $199,000.

The most expensive house, a single three-bedroom unit, sold for between $400,000 and $449,999.

Single family homes, in terms of what is selling, continue to lead the way. According to MRIS, no condos sold in April in Culpeper.

Houses, however, are staying on the market for shorter periods of time – 46 days in April compared to 129 last year.

Of the 40 houses sold in April, seven paid with cash.

According to MRIS, Culpeper County had 317 active real estate listings in April, compared to 361 last April.