According to DataQuick, foreclosures accounted for 25% of Bay Area homes purchased in April. We’ve seen a lot of press over the last year on foreclosure activity in Conta Costa County and the Greater Bay Area. This is the first report, I have seen on the impact foreclosure purchases are having on home sales.

We’ve reported on foreclosure activity in San Ramon & Danville, Dublin, and Concord CA. We also noted how investor activity is increasing with foreclosure purchases. And, we have have also been reporting on how lenders are trying to help expedite the purchase of REOs (bank owned properties).

It is no surprise to us to read this news from DQ. In fact, it’s not really news to those who have been following the local real estate markets except for the actual figure.

Every week at the local Realtor marketing meetings in San Ramon, Pleasanton and Concord, we hear reports from our fellow professionals on increased home sales activity in Contra Costa County.

Craig, our foreclosure expert, has been talking with as many past clients as he can about the investment opportunity that exists today with all of the available REOs on the market. We are also noticing more buyers approaching us with an interest in bank owned properties.

We expect this 25% figure to rise. It will come as no surprise to us to see foreclosure sales account for 40% of all home sales in Contra Costa County by the end of the year.

If you have an interest in purchasing a foreclosed property (REO, bank owned), contact Craig – (925) 984-4910

Related Article:

One Sign That Markets Are At Bottom…

California Home Sale Price Medians by County and City

Reporting resale single family residences and condos as well as new homes
 % Change is from the same month last year

With the continued problems in the mortgage markets, we are getting one to two inquiries a day from consumers and investors interested in short sales and foreclosures. Every week at the three real estate marketing meetings we attend (covering San Ramon, Danville, Alamo, Walnut Creek, Concord, Dublin and Pleasanton, CA), we are hearing more and more from our fellow agents about transactions falling through, short sale listings, and possible foreclosures.

This is not to say that the entire housing market in the 680 corridor is a mess. On the contrary, the market in general remains fairly stable as housing prices correct from years of record appreciation and easy money to borrow. It appears that we may be nearing the bottom of the correction (barring any other major upheavals). We expect the situation to stabilize by the end of the year and see next spring bringing us back to a normal market with better lending standards in place.

Getting back to the current situation of interest in short sales and foreclosures, we notice a significant lack of knowledge from those inquiring on the foreclosure and short sale process. The average person is unaware of the hassles and complexities involved in a successful short sale or foreclosure transaction. They've seen infomercials and ads from "real estate gurus" on how they can get sweet deals or easy profits from short sales or foreclosures.

If you've never been to a foreclosure auction, it is an experience worth having. First, be sure to show up with a briefcase full of cashiers checks, like the professionals do. You'll be in a bidding war with people who have been making a living at this for quite some time. Also, wear your thick skin because these folks can be quite intimidating as they try to scare you away.

The short sale process is a little different. You have to be prepared for 60 or 90 days of exasperating and frustrating non or minimal communication from a ponderous lending instituti