Charles County Foreclosure Statistics
Foreclosures are rapidly changing our local real estate market here in Charles County. The more foreclosures we see, the more home values are impacted, and the red hot foreclosure market is showing no signs of slowing down.
County Update
In 2006, we saw a total of 19 foreclosures sold through Realtors. In 2007, that number has jumped to 61. The reason is two-fold. First, because there is so little equity involved in foreclosures (due to purchases made at the height of the market with sub-prime loans), Banks are forced to sell their properties through brokerages to minimize their financial losses rather than through foreclosure auctions, which previously had been the easiest method to unload bank owned homes.
Currently, there are 51 bank-owned properties available for sale in the County, up 10% from last month, and that number is expected to climb as more people are hit with mortgage rate adjustments.
Waldorf Statistics
Waldorf alone has 29 Pre-Foreclosure Properties right now according to Realty-Trac, 169 Properties available for auction (most of these will end up available through real estate brokers due to the high debt ratios), and 34 bank-owned properties.
Is There Relief?
Maryland in particular is being devastated by this trend. We're currently listed as 15th in the nation for foreclosures, up from 40th a year ago (a 370% increase). A task force was established by Governor O'Malley back in June, but so far, there has been nothing but increases in the number of local foreclosures.
Part of the problem is the rise is mortgage fraud, over 400 homes were involved in the Metropolitan Money Store Scam, and over 1,000 were wrapped up in the Metro Dream Homes scandal.
Another thing to bear in mind is the new sub-prime rate freeze announced recently. The scope of the freeze is extremely limited however, and it is not the "rescue" that many people were hoping for.
Future Forecast
This is not a concern that is simply going to correct itself with the next six months, or even the next year. Home prices are expected to continue to fall, and county sales statistics are evident of the need for the market to deflate further over the next year. It is likely to take at least 18-24 months before the market and home values in the are begin to see any sort of healthy increase in value.
Century 21 New Millennium
Team Benya
301-653-8116
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