Foreclosures in Virginia – Triple of July-07

Here’s a milestone: There are now more foreclosures on prime mortgages than on subprime ones.

Foreclosures in Virginia nearly tripled last month compared with July 2007, with Northern Virginia accounting for more than half of the foreclosures.

Virginia had 5,745 foreclosure filings last month and the 10th-highest rate in the country last month, RealtyTrac reported. The number of homes in the United States facing foreclosure in July jumped 55 percent from the year before.

There is a silver lining in some areas of Northern Virginia. Home sales in Prince William have increased sharply, as sizable price decreases have attracted first-time buyers and investors who want to take advantage of the deals, according to the Virginia Association of Realtors.

Experts said the housing market will not fully recover until foreclosures are absorbed.

The report from the Virginia Association of Realtors pointed to “dramatic” differences between Northern Virginia and other parts of the state, which have not experienced such steep drops in home prices. The association said it expects regional sales activity “to widen in the next quarter before the overall housing market edges back toward equilibrium.”

Virginia is almost like two different states, said Rick Sharga, senior vice president of RealtyTrac. “Northern Virginia tends to behave a little differently because of its proximity to the Beltway,” he said.

Having the 10th highest foreclosure rate in the country isn’t so terrible, Sharga said, because the rates in the top six states, including California and Florida, are much worse. “After the election in November, there will be an influx of new jobs, regardless of who takes office,” he said.

That’s the slogan for Keller Williams real estate agent Tamara Ludlam’s just formed bus tour of foreclosed homes.

Hauling interested homebuyers around in a mini-bus to get a look at recently foreclosed homes on a Saturday morning has become a national trend with tours now in such cities as Pismo Beach, Calif.; Fort Myers, Fla.; Tucson, Ariz. and many others.