For anyone following my posts recently knows that I have been keeping an eye on the inventory, especially Prince William County, to see what might be coming next.
My first post pondered why the Prince William County housing inventory numbers reported in the MLS and by others was significantly lower than the previous quarter. The second showed some of the issues buyers were facing with the low inventory. Bidding wars in Prince William County started again resembling the hot market in 2002-2004.
Now Housing Wire has reported a number of critical numbers. Per Housing Wire the foreclosures decreased 77% in December and 79% in January from the previous quarter. During the same time period the number of loans that reported as 60 or 90 days delinquent increased 47%. Now these numbers are nation wide and don’t reflect only local numbers. However the Washington Post this week had 14 pages of Trustee Sales that have to end up somewhere and that somewhere is usually the MLS.
Even without a crystal ball it would seem that unless a significant portion of the delinquent loans are modified that there will be more foreclosures coming on the market in the next quarter. So the question becomes for those of us working with buyers at the lower end of the current Prince William County market should we advise them to wait and not get involved in the bidding process or move ahead and deal with the stress the current market has created?
March inventory numbers in Prince William County