Reston virginia homes have different values due to foreclosures in market

Homeowners have to brace for yesteryear values on their property.

The fat times are gone and aren't likely to return any time in the near future.

We went through 10 years where property values were going up like crazy, and now It's done a complete 180 on what they were.

Before 2006, foreclosure sales weren't considered when the a county had to reassess the value of thousands of parcels of property. They were excluded in market value calculations of property because they weren't considered transactions between willing and able buyers and sellers.

But in the real estate bust period, foreclosures couldn't be ignored. It got to the point where those Reston VA Homes for Sale did start to affect the market.

By 2007 foreclosed property represented a big percentage of all sales in Fairfax County and Northern Virginia.

Foreclosures and "short sales," in which the seller settles on getting a lot less for a property, now make up the majority of real estate transactions. "About anyone buying a house today is in a short sale".

Northern Virginia isn't alone. Hard hit areas include Florida, Nevada, California and Arizona. Easy credit unhinged the real estate market from traditional loan practices based on the actual value of homes.

Mountains of free-flowing financing, greed and unrealistic demand helped create the bubble that burst, resulting in foreclosures, stalled sales and plunging real estate prices.

A recent report showed a national drop in existing home prices in 20 metropolitan areas. They fell in March to their lowest level since 2002.

The National Association of Realtors last week said fewer people bought previously occupied homes in May. Sales dropped to their weakest point of the year, sinking 3.8 percent from April to a seasonally adjusted annual rate of 4.81 million homes. Homes for Sale in Reston VA were up last month compared with April but down from May 2010.

The Northern Virginia area, while affected, remains stable in comparison. Reassessment, particularly in bad economic times, actually helps level out the value of homes that otherwise would be dragged down by the extreme number of foreclosures and short sales.

Property values in this part of the Mid Atlantic area are more stable than other areas. This market hasn't experienced either wild rides of excessive highs or terrible drops in value.

Housing markets in hard-hit cities aren't expected to return to normal until 2025 to 2035. This area, thankfully, is different. "I think that we're in the process of stabilizing now,".

The equity growth of 10 percent to 15 percent that homeowners experienced in the mid-1990s to 2006 is gone. Today owners can expect 1960s, 1970s and 1980s increases of about 1.5 percent

It is a saner approach compared to the wild ride we've been on.