If the activity on our site is any kind of indicator of today's buyer mindset, then interest in REOs (bank owned properties) is one of the top areas of interest for today’s home buyer. Our inbound leads with an interest in bank owned properties and foreclosures has increased about 30% over the last month.

In parts of Contra Costa County, home values have dropped more than 50%. Rents are continuing to rise. This is the perfect scenario for investors looking for real estate opportunities that can create cash flow or at least get near positive cash flow.

The situation in eastern Contra Costa County (Antioch, Pittsburg, Brentwood) is producing some of the best price values, but investors are showing some concern about those depressed home values bouncing back. The thing to remember is that the same housing affordability dynamics still exist in the East Bay and Contra Costa County.

East Bay communities like Antioch, Brentwood and Pittsburg still offer some of the most affordable real estate in the San Francisco Bay Area. With BART considering an extension into Antioch in the next few years, it is going to make these East Bay communities even more attractive to home buyers looking for affordable housing.

Large investor groups are beginning to look at these communities. It would not surprise me to see the lion’s share of foreclosures in these areas gobbled up by investors in the next 6 months.

As I noted in my post – Now is the Time to Buy that Retirement Home – this is a wonderful window of opportunity for East Bay baby boomers.

The interest in foreclosures and bank owned properties is not confined to eastern Contra Costa County. On Friday, we received an inquiry from an investor looking for a vacation home or second home in the Bay Area in the $3million range. There are foreclosures and REOs in all price ranges.

High-end communities like Blackhawk, Danville and Lafayette have their share of real estate deals to offer this summer. Communities like San Ramon and Pleasanton, CA continue to see value-priced homes entering the market, which is a real benefit for employees of companies moving into Bishop Ranch like PG (links to past posts).

We think that the second half of 2008 may be the best second-half real estate year the TriValley has seen is quite a while.

Dr. Bajaj, a financial economist is very optomistic on the possibility of real estate recovering from the subprime mess in the near future. A couple of good quarters with the banks not taking any more drastic write-downs, some relaxation of over-reactive lending guidelines – and we could see foreign investment in the U.S. economy return in a big way.

If you have an interest in foreclosures or bank owned properties, talk to our REO specialist - Craig - (925) 895-2694 

If you are relocating to the East Bay be sure to check out the communities along the I-680 Corridor (Walnut Creek, Alamo, Danville, San Ramon, Dublin & Pleasanton). Also, look at the communities between Walnut Creek and Berkeley - Lafayette, Orinda and Moraga. 

What Ginny and I like about living in the East Bay (Danville) is the safe environment, great communities and the award-winning schools. The outdoor living makes life even more pleasant. In general the weather is nice, the climate is warm and dry.

There are many fun communities, like Pleasanton, Danville, Lafayette and Walnut Creek which has that real down town feeling. The whole area is rife with great restaurants, bars and shops.

In summer, most communities organize art, music and wine festivals or Danville's "Hot Summer Nights" (video) with live bands and colorful hot rods. Another big event in Danville is the 4th of July parade.

The area is great for outdoor activities like running or riding your bike on the Iron Horse Trail, a bike path that runs all the way from Pleasanton up to Walnut Creek. We love riding our bikes on the trail to downtown Danville to go have lunch or have a coffee. Biking is also popular on Mount  Diablo, a great landmark in the valley where people like to hike, camp, ride horses or just visit the center at the top of the mountain where you can read and learn about the history of the valley including the many Indian tribes that have lived here.

BART is a great way to get to San Francisco quickly and you avoid the hassle of parking your car in the city. BART runs from either Dublin/Pleasanton or Lafayette/Walnut Creek to San Francisco.

Living in the East Bay is great; you not only have the advantage of raising your children in a small community but at the same time you have one of the world's great cosmopolitan cities nearby. The East Bay, having so much to offer, is simply one of the best areas you could hope to relocate to.