Re: The sky is NOT falling, foreclosures, mostly subject to specific areas
Posted by:
WashingToneLocian
()
Date: March 27, 2008 04:49PM
ffxn8v Wrote:
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> This past week, another report came out that
> showed that most of the foreclosures in our area,
> are in Herndon. Look further, and Manassas is high
> on the list and so is the Prince William area as a
> whole. Fairfax County in general, is doing better
> than most. Alexandria and Arlington, even better.
> So why is the sky falling in only certain areas?
> Is it the people who bought those homes who should
> not and could not afford them to begin with? Is it
> those areas probably were cheaper than much of
> Fairfax County? I am not sure, but I do know that
> the homes I know are foreclosed upon, the buyers
> simply walked away… Well, with a liar—loan, was it
> really theirs (ever) anyways?
There are probably several reasons for that.
1. Growth in PWC was driven primarily by Hispanics moving into the county. Now that PWC is on the anti-illegal immigrant warpath, the Hispanics are leaving and not buying.
2. Because PWC had new developments, it attracted more first-time homebuyers who didn't have 20% to put down. Most of the people I know living in Fairfax have been here for years and so were not impacted as much by the housing bubble.
3. The demographics in outlying areas is probably younger, so people with less experience with home ownership probably took out their equity when they re-financed instead of leaving it there. Now they are screwed because they owe more than the house is worth.
4. People living close-in have higher incomes than those living out. A lot of your firefighters, police, teachers, etc, live in PWC and Loudoun and drive in to their jobs. Alexandria, Arlington, etc, are full of lawyers, lobbyists, doctors, etc.