The Loudoun County Board of Supervisors prepared a report entitled "Subprime Lending - Loudoun County Impacts Report" for their meeting on February 20, 2008. The report is on the impact of subprime lending and foreclosures on Loudoun County and covers such items as:
- reduced housing demand
- increased housing supply
- reduced prices
- slower homebuilding
- the impact on specific neighborhoods in Loudoun County
- the areas with the greatest incidence of subprime borrowing (Sterling, Countryside, Sugarland and NE Town of Leesburg)
The report also consists of maps showing "low risk" and "high risk" areas within the county based on "Subprime Purchase Incidence" as well as "Foreclosures as Percent of Total Home Sales, January to June 2007 Loudoun County".
Unfortunately, the report does not include second half 2007 statistics in detail. The second half of 2007 saw a big increase in foreclosures both in number and as a percentage of total home sales. Though the report shows the beginning of the trend, it does not fully show nor illustrate the impact of subprime lending and foreclosures in Loudoun County.
For example, the report states:
"Foreclosures in the first half of 2007 represented 10% of Loudoun County sales but account for 25% of sales in the most affected area."
If they were to look at second half 2007 statistics in detail, they would see that those percentages are much higher than first half 2007 percentages, especially when looking at November's and December's figures.
The report does a good job analyzing the impact of subprime lending and foreclosures on Loudoun County. Just hope that they don't underestimate the true impact of subprime lending and foreclosures on Loudoun County and apply that to other decisions moving forward.
For the full report, click here and look for "Item #6 Subprime Lending and Attachments" (pdf).
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