San Francisco Foreclosed Homes Soaring in First Quarter
May 6th, 2008 by 
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San Francisco Foreclosed Homes soared during the first three months of the year, as foreclosures in the Bay Area rose over 300% higher than they were not one year ago. And to make matters worse for homeowners in the area, experts are expecting this number to climb as the year proceeds.
California home foreclosures saw a record first quarter, with more than 47,000 properties entering into foreclosure during the first quarter, up a staggering 400% from the 2007 first quarter total of 11,000. The current inventory of foreclosed homes for sale in the state is the highest it’s been in 15 years.
Much of the problem seems to be self-fulfilling. As subprime mortgages continue to reset, and home prices fall ever further, it’s creating a vicious downward spiral, in which the faller home values fall, the more San Francisco Foreclosed Homes come onto the market. People are making high mortgage payments on homes that are no longer worth anywhere near what they originally paid for them, and the market has lost all value.
More homes are going into default as well, leading to a huge swell in the number of San Francisco foreclosure listings. The number of properties in default has jumped 250% since last year, meaning there are more people homes that will likely end up on the auction block.
This creates a dangerous situation for investors, as it’s tough to be sure when bay area properties will start to have a chance to appreciate again, but if you’re a homeowner looking to take out a long term, fixed rate mortgage, the prices these properties are going for now are unbelievably low.
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5 Comments »
May 9th, 2008 at 12:09 pm
[...] San Francisco Foreclosed Homes Soaring in First Quarter San Francisco Foreclosed Homes soared during the first three months of the year, as foreclosures in the Bay Area rose over 300% higher than they were not one year ago. And to make matters worse for homeowners in the area, experts are expecting this number to climb as the year proceeds. [...]
May 10th, 2008 at 4:01 pm
[...] San Francisco Foreclosed Homes Soaring in First Quarter San Francisco Foreclosed Homes soared during the first three months of the year, as foreclosures in the Bay Area rose over 300% higher than they were not one year ago. And to make matters worse for homeowners in the area, experts are expecting this number to climb as the year proceeds. [...]
May 10th, 2008 at 9:30 pm
[...] San Francisco Foreclosed Homes Soaring in First Quarter San Francisco Foreclosed Homes soared during the first three months of the year, as foreclosures in the Bay Area rose over 300% higher than they were not one year ago. And to make matters worse for homeowners in the area, experts are expecting this number to climb as the year proceeds. [...]
May 23rd, 2008 at 12:27 pm
[...] San Francisco Foreclosed Homes Soaring in First Quarter [...]
June 2nd, 2008 at 10:12 am
[...] San Francisco Foreclosed Homes Soaring in First Quarter [...]