Short Sales Continue to Increase in 2012
The Hampton Roads housing market is seeing some initial signs of improvement, according to Zillow’s Chief Economist, Stan Humphries (http://www.sfgate.com/business/bloomberg/article/U-S-Home-Values-Post-First-Increase-Since-2007-3731799.php). However, the improvement is quite limited, and the economic conditions that forced so many families into foreclosure or short sale are still present. While the housing market is expected to improve about 1% over the next year, thereby reversing the downward stagnation from the past few years, there are innumerable homeowners who will find a short sale as their best loss mitigation option.
Many clients who come to us have spent their life savings keeping up on their mortgages when financial hardship hit, and many more acquired temporary loan modifications that are now ending. Short sales will continue to be the best option for households that attempted to outlast the recession, but have still not found work, or that have found lower paying jobs.
Moreover, with the upcoming military shake up, it appears that the area will lose a net of 5400 military men and women over the next few years. This is the community that has been hardest hit in the housing market locally, due to the frequency of transfer in military service. Look for a steady increase in short sales this fall.