The almost 40,000 residents of the city of Woodbridge, Virginia saw how foreclosures sales grew to nearly 2,000 annually from 2003 to 2005, declined and is now showing signs of recovery.
From years 2000 to 2007, Woodbridge’s population increased by almost 27 percent as people flocked to the city to take advantage of the affordable housing, local parks and tree-lined neighborhoods.
Because of the rapid increase of the city’s population, sales of distressed homes grew and deals almost doubled to 2,000 per year from 2003 to 2005.
Just as the housing market was on its way to the top, prices fell by as much as 40 percent and foreclosed homes sales declined by almost half from peak levels. For awhile, Woodbridge has become a garage of abandoned and vacant foreclosed properties.
But not for long. Sales of repossessed properties in Woodbridge are starting to peak up as potential buyers search for affordable properties. In fact, the city’s sales rate is nearing its 2005 levels.
According to Mortgage Bankers Association, the volume of subprime adjustable-rate mortgage loans and adjustable-rate mortgages in the state of Virginia defaulted at 23 percent, one of the highest rates in the United States.
Currently, the average median price of a repossessed property in Woodbridge is $213,416, lower from a high price of $333,900 in 2008 but not down enough to totally weaken the housing market and eliminate the possibility of its recovery.
Real estate attorney Cullen Watson said that he cannot believe that prices of foreclosure homes that people are buying could be that low.
Aside from Woodbridge, the towns of Murrieta, California, Port St. Lucie, Florida and Queen Creek, Arizona have been affected by foreclosures and subprime mortgages but are showing signs of recovery as potential buyers continue to flock to these places in search of affordable housing.
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