The drop in San Jose foreclosed homes for sale has been improving home prices in the area, based on data from real estate research companies.
In November, the median sales price for a pre-owned single family house in Santa Clara County, where San Jose is located, has increased by almost 14 percent from November last year to $550,000. The median however was still far below the $805,000 peak price hit in August 2007.
The median sales price for all types of homes rose in November by nearly 10 percent from last year to $494,400, the second consecutive month of year-over-year increases.
In nearby San Mateo County, the median sales price for all types of homes rose by 1.2 percent to $587,550.
The sales median for all types of residential units in the Bay Area in November was $387,000, an increase of almost 11 percent from $350,000. Total home sales in the area soared by nearly 20 percent, with sales in Santa Clara increasing by more than 47 percent, sales in Marin rising by nearly 53 percent and sales in San Francisco increasing by nearly 47 percent.
While the number of San Jose foreclosed homes for sale has been declining, city officials are still concerned. A total of 435 completed foreclosures were posted in November in Santa Clara County, with another 938 households receiving default notices.
To control the number of further foreclosures, San Jose officials led by Mayor Chuck Reed has approved new legislation that would reward banks that are really helping homeowners save their homes from foreclosure by using the city's investment clout.
The new legislation would direct city financial officials to buy certificates of deposits and other financial instruments only from banks that are cooperating with the city in its programs to help distressed homeowners.
City officials Madison Nguyen and Sam Liccardo said that the city needs to use its investment power to encourage banks to help troubled homeowners and force uncooperative banks to reconsider their policies.
According to city officials, San Jose, the biggest city in the San Francisco Bay Area, has about 9,000 houses in foreclosure. Based on national foreclosure prevention data, only 31,000 out of over 700,000 mortgage loans modified under the Home Affordable Modification Program have been put into permanent modification status.
