Foreclosure Tax Deed Sales Worry Housing Analysts

by on States

Housing analysts in Virginia have stated that backlog in foreclosed tax deed sales and bank foreclosed properties and fewer home sales can pull the state back from a recovery. Although there have been fewer defaulting homeowners in the region, analysts stated that low sales and high distressed property numbers can reverse improvements in the housing market.

According to housing industry analysts, there have been very few buyers of Richmond foreclosures for sale and other residential property types in various markets of the state. They stated that this could precipitate another downturn that can stall the region's housing recovery. Local realtors have reported that sales have been declining since the federal government's tax credit incentive expired. If the weakness in the home buying segment continues, analysts stated that the region could be looking at a longer recovery period.

Despite the recent slowdown in purchase activities involving non-foreclosed and foreclosed homes for sale in Virginia, most analysts believe that 2012 will bring in better numbers for the region's housing, particularly in the sales department. According to them, housing will likely return to normal before 2012 ends. Recent worries over the status of the housing industry emerged following reported increases in foreclosure figures in the state starting in the 2010 third quarter, analysts have reported.

Industry data showed that bank foreclosed homes and foreclosure tax deed sales have jumped in Virginia during July-October 2010. Numbers for that quarter showed that foreclosure totals were up by more than 4,000 when compared with the same 2008 quarter, the year when distressed property numbers started to hit near peak levels. Since then, the local government has established a number of programs and agencies that are meant to look in on the problem of foreclosed properties.

The Virginia Foreclosure Task Force was one of these efforts, with the group reportedly established to come up with proposals that will help alleviate the problem of foreclosures in the region. The group has been keeping a close eye on developments in the residential property industry and has reportedly taken note of rising foreclosed property numbers and declining housing unit sales.

Virginia has not had the same level of foreclosure tax deed sales and distressed properties seen in hard-hit areas like Nevada and California. However, local officials are still wary lest the state reverts back to two or three years ago, when unprecedented increases in distressed home numbers hit the state. For now though, realtors are hoping that spring will bring in more buyers to the Virginia market.