City budget officials have found that most of the foreclosures in Alexandria are taking place in condominiums valued at less than $200,000.
Jurisdictions inside the Beltway have been largely shielded from the brunt of the foreclosure crisis. But the number of foreclosures in Alexandria has risen to the highest level since the beginning of the crisis 2008.
The trend is driven by condominiums, which make up an increasing percentage of foreclosures in Alexandria. According to a recent analysis conducted by city budget officials, most of the foreclosures are taking place at the low end of the market -- condominiums valued at less than $200,000. Budget analyst Eric Eisinger says he doesn't expect the higher end condominiums to become part of the problem.
"There's no evidence to date that foreclosures are moving up the property ladder," he says.
Matt Trogden purchased a condominium four months ago. He says he saw a large number of foreclosed condominiums on the market.
"It's the kind of deal where things could look fine and the pipes could break two months later and there's no recourse there," Trogden says.
Like many other buyers, Trogden decided he didn't want to take that risk. That's one of the reasons why many banks are holding back distressed properties in an effort to prevent creating a glut in the market that would depress real-estate values even more.
Michael Pope also reports for Northern Virginia's Connection Newspapers.