The Herndon Real Estate Market 2010-2011 PRICE OF DETACHED SINGLE FAMILY HOMES CONTINUE TO RISE!!
In 2010, 233 detached single family (DSF) homes were sold in Herndon at a median sales price of $375,000. By 2011, the number of DSF homes sold had decreased by 10% to 210, but the median sales price increased to $400,250.
Despite the continued drop in the number of homes sold over the past four year from 421 to 210, the median sales price has increased over the same period from $340,083 to $400,250. The steady increase in price could indicate that price stability is finally returning to Herndon's housing market. Nonetheless, it is and will remain a buyer's market for the foreseeable future. Interest rates, while at historic lows, appear unable to attract additional buyers.
The wild card in the Herndon DSF housing market continues to be the foreclosures and short sales. In 2010, seventy-nine of the 333 listed properties were bank-mediated. This represented 24% of the market. Of the 233 DSF homes sold that year, 67 or 29% were bank mediated. By 2011, the number of bank-mediated properties on the market had declined to 56 or 27% of market. Of the 210 homes sold in 2011, 43 or 20% were bank-mediated properties. While bank mediated homes are declining, they still represent a significant share of the DSF homes in Herndon and the decline may be temporary.
Another potential influence on the housing market this year is the pending expiration of The Mortgage Forgiveness Debt Relief Act of 2007. This law generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief. This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn't apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home's value or the taxpayer's financial condition.
This looming event could cause an increase in short sales further depressing the market as owners reconsider their financial situation.
Company: Keller Williams Realty
Phone: 703-216-9669
Email: jc4real3 at gmail dot com
