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about 40 percent of where I was," he said, noting that fewer homeowners are refinancing, as well, having already tapped into their home's equity or seen it eroded by devaluation.
The decline in the market, Henry said, was inevitable.
“It had gone up too far, too fast. Anytime you see something that has a run up like real estate has had in the last few years, there has to be a correction,” he said.
The worst hit areas in Fauquier County were subdivisions built by national homebuilders, Henry said.
I think what happened was that there were no checks and balances,"' he said. "Somebody went in with an in-house mortgage lender, an in-house appraiser, and an in-house title company"
Henry points to a townhouse development off Academy Hill Road as an example, noting that these attached units sold for as high as $450,000 at the peak of the market. This spring, he said, they are priced in the $250,000 range.
And. while these price reductions are dramatic, the market has not reached the bottom, he said.
"The next two or three months will be pretty critical," Henry said, predicting that banks will start to liquidate their real estate holdings with large-scale auctions this s\immer. “That will clear out some of this inventory, but it will probably drive prices lower. The absolute bottom is guing to be when people can buy a house and rent it out and cover that mortgage. That’s the floor."
As the market drops, the silver lining in the housing market becomes apparent.
With loads of inventory little competition from other buyers, and “terrific" interest rates hovering around six percent, now is a great time to buy. he said.
Acknowledging that Fauquier County haM' lbng struggled with affordable housing, Henry said the decline in values may offer opportunities to young couples and families.
“You can go into Fauquier County, particularly in Bealeton. and buy a twostory colonial with three or four bedrooms, two and a half baths, and a garage for under $300,000,” Henry said, noting that a mortgage of that site would typically carry a payment of $1,500 a month. “For a family of two
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