Every week consumers are hit with market reports of all types. What intrigues me about sales numbers in a neighborhood is what might the story behind the sales numbers be? Today I took a look at the numbers in the Port Potomac neighborhood in Prince William County to see what I could find. For ease I focused this report on townhouses in the neighborhood.
So why the increase in values? Was it the first time home buyers tax credit? Was it the lower interest rates for buyers? Or was it the change in the number of distressed properties being sold in the neighborhood?
Most likely it was a combination of all of them, yet I took a closer look at the last question, the change of numbers in distressed properties in the neighborhood. If you look at the numbers you will see that foreclosures in Port Potomac townhouses last year even outpaced even short sales. In 2009 distressed properties and in particular foreclosures ruled the neighborhood. In 2010 the number of foreclosures for sale is just below half of 2009 numbers. Though short sales are still at the same number we see fewer short sales being sold below far below market value.
For anyone not familiar with Port Potomac, the townhouses in the neighborhood were completed and delivered in late 2004 and into 2005. This was the height of the market in Prince William County and a time when many new developments were the target of buyers hoping to make a quick flip and put some money in their pocket. Timing is everything and the buyers who bought early in the project and sold quickly did manage to walk away but those who bought just a few months later found themselves in a tougher spot.
Today’s buyers in Port Potomac are getting a great deal in a development that offers terrific amenities and a location that offers multiple options for commuting from Prince William County to DC to the North and Quantico to the South. Unlike detached homes in the neighborhood, townhouse sales no longer have to compete with new construction, which should also help to stabilize townhouse prices.