Housing foreclosure rates in Virginia are nearly half the United States rate and almost non-existent in the historic triangle, according to the Virginia Department of Housing and Community Development.
Williamsburg, James City County, York County, Poquoson, Gloucester and Matthews combined had a rate of approximately 0.25% compared to the national rate of 2.4%. The rate is based on the number of foreclosures out of all mortgage loans in a given year.
A presentation called “Overview of Virginia’s Foreclosure Problem” from the July 23rd summit presented by the Virginia Foreclosure Prevention Task Force reported the findings.
Northern Virginia, including Culpepper, Winchester and some areas around Washington, DC were higher than the state average, and much closer to the national average.
In Hampton Road, Norfolk was the only city with a higher foreclosure rate than the national average at close to 3.0% annually. In Richmond, Caroline County has been hardest hit at a rate of 3.7%.
85% of Virginia’s foreclosures in March of 2008 came from either “Subprime” loans, adjustable rate mortgages and alternative loan programs for people with poor credit, according to the report.
The report concluded by pointing out that an upturn in home sales will mark the bottom of the market—as unsold inventory declines, prices will stabilize and foreclosures ease.
Current data show most Virginia markets still experiencing declining home sales. However, in Northern Virginia steep price cuts are now contributing to a rebound in home sales.
The full report can be viewed at www.dhcd.virginia.gov