Real Estate Market in Fairfax, Virginia
Fairfax County, VA. In 2008, the residential real estate market experienced a decline due in part to the over supply of homes for sale. This led to lower sale prices in many neighborhoods. In 2009, the market continued a decline but at a much slower rate. As of January 1, 2010, the real estate market changed during 2009 has resulted in an overall decrease in residential property assessments due to equalization totaling -5.56%.
The amount of price decline varied by property type and neighborhood. About 80% of residential properties, excluding those with new construction, have an assessment decrease for 2010. Another 16% have no change in assessed value from the prior year.
The number of days that properties were listed for sale decreased from an average of about 100 in 2008, to an average of approximately 72 days in 2009.
Residential foreclosure properties decreased in the County during the past year by roughly 60%. As a duress sale, foreclosures themselves, or lender “take backs”, are not “arms-length” transactions under Virginia law.
These forced transactions are typically based on the loan amount, not necessarily the fair market value. Regardless, foreclosures generally have a dampening affect on competitive sale prices, and some influence continues to be reflected in the 2010 assessment decline. The prevalence of foreclosure activity was not uniform throughout the County.
It is important to note that the assessment changes discussed here are county-wide averages and may not reflect the assessment changes within a different neighborhood.
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