Summary of Virginia Foreclosures in December 2010
Just like most states during this time of recession, Virginia’s economy was what is called “soft” during the last fiscal quarter. Virginia closed out the year in December with mixed indicators. However, when the data is analyzed it is apparent that there is some slow 
change occurring for the better, which gives hope that the end of the recession is in sight. Several thousand jobs were added to the market during the last quarter, and the unemployment level stayed relatively the same. While the number of new residential building permits dropped along with housing sales. Positively, home prices have begun to rise for the first time in over three years. The number of mortgages with 90-day or more delinquency fell as well, marking the third straight quarter where the volume of delinquency has decreased. The number of Virginia foreclosures varied according to the area, with some metropolitan areas showing decreases in the amount of foreclosures filed and increases in others.
When you examine Virginia city by city, often the rate of foreclosures is an indicator of the state of the economy. On the negative side of the scale, there were several cities which showed increases in foreclosures. The highest percentage increase at 11.4035% was in Virginia Beach, which is the biggest city in Virginia and a major tourism draw due to the nearby coast. The fact that a large percentage of the workers in this city receive their income from such a seasonal occupation which is prone to high numbers of layoffs could be a major factor in Virginia Beach foreclosures. This is since during the slow season these buyers might fall behind on mortgage payments. Second highest in foreclosures is in Norfolk, Virginia’s second-largest city, at 7.6087%. The region has many industrial manufacturing plants, which has laid off many workers in the past year as the economy has worsened. This resulted in more Norfolk foreclosures. Third on the list is Fredericksburg, a city that also relies heavily on tourism and services industries, which have been hit hard by the recession. Fredericksburg foreclosures saw an increase of 5.3763% in December. Alexandria was listed fourth in the rate of foreclosures in December, which increased by 2.0548%. The largest employer of residents of Alexandria, which is located just 6 miles south of Washington, DC, is the federal or state government. Due to this stable employment base, Alexandria foreclosures saw the least increase in the state.
Two cities registered actual decreases in the number of foreclosures in December. The runner up was Woodbridge, which saw -8.1395% fewer 
filings than the month before. This decrease is likely the result of the high income and property value level of this city’s population. The city in Virginia with the largest percentage decrease was Manassas, with a startling drop of 13.9394%. This drop is directly related to the fact that the last of the subprime mortgage interest rates were reset, causing the number of foreclosures to fall. Manassas foreclosures are expected to continue decreasing.
December was a busy month for Virginia, but two stories stood out in their relevancy to the state economy. A major coal plant closed down in Ashland, resulting in 100 jobs lost. The AK Coke processing center was considered out of date and was not cost effective for the company to continue running. Additionally, the massive snowstorm that blanketed the entire eastern seaboard in late December shut down commerce and made life very difficult for thousands of Virginians. Roads, businesses and schools were closed, as well as major power outages occurring. It can only be hoped that these two factors do not make for more increases in Virginia foreclosures and an increased unemployment rate for January.
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