Many of my clients ask me how to find great deals on foreclosed homes. Also known as REOs or bank-owned properties, foreclosures are generally listed in Multiple Listing Service just like other homes. Complimentary MLS access can be found at www.PatrickLowell.com . Unlike many areas in California, there are relatively few foreclosures in San Francisco. As reported at www.TheFrontSteps.com there is a misconception that SF has a large inventory of foreclosures in all neighborhoods, as is the case in some other communities. In reality, the few bank-owned homes we do have are sprinkled throughout just a few SF neighborhoods.
From TheFrontSteps.com:
Out of 465 Active house listings, only 40 are REOs, of which 24 (60%) are in districts 3 & 10 (Bayview to Oceanside). Only 2 are in district 5 (Noe/ Castro/ Haight), and zero are in District 7 (Pacific Heights/ Marina). Those waiting for an upcoming deluge of bank-owned houses in the better neighborhoods of the city (and a downward spiral of prices) are probably waiting in vain.
The number of REO sold houses in 2010 in SF was 291 (out of 2309 sales) down from 309 sales in 2009. Of the 291 REO house sales in 2010, 216 (74%) were in districts 3 & 10. In district 7, there were 3 REO houses sold in 2010, less than 1 per quarter.
Out of 721 Active condo/TIC listings, only 41 (5.7%) are REOs, of which 15 are in district 9 (SOMA/ South Beach), 6 are in district 5, and 1 is in district 7.
The number of REO condos sold in 2010 did go up as a percentage of total sales, coming in at 7.7% of sales up from 5.6% of sales in 2009. But still a relatively small percentage of total sales.
Of the 239 condos and TICs sold district 7 in 2010, 10 (4%) were REO sales.
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It seems to me that the size of our small city has again reduced our market volatility and protected us from the waves of distressed property sales that have inundated other communities. There’s no denying that foreclosures are up and prices are down in SF, but when compared with places like Sacramento, Palm Springs, San Diego, Las Vegas or Tampa, we are really doing relatively well.
