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 

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…

The Dublin CA real estate market is an interesting blend of dynamics. RealtyTrac is showing 428 properties in Pre-Foreclosure, 98 homes being Auctioned and 247 REOs (bank owned properties) in Dublin.

An article in yesterday’s Contra Costa Times on foreclosures mentioned that having a bank owned property next to yours could lower your property value $50,000. A non-profit study conducted a couple of years ago says every foreclosure within an 1/8^th of a mile of your home could reduce the value of your home by up to 1.1% each!

In addition to the rising foreclosures and REOs in Dublin, there is the downward pressures on home values being brought by some builders as we noted here.

Giiven all of this, it’s interesting to see the chart of this weeks MLS stats for Dublin CA. Declining inventory of resale homes and increasing pending sales usually mean a market shifting in favor of the seller, but this is not the case in Dublin where there is just too much new home inventory on the market competing with homes for resale.

You don’t need to go any further than the weekend paper to see how much pressure new home builders are putting on Dublin prices. The big builders are discounting prices, offering incentives and financing assistance that is forcing homeowners to get aggresive with their pricing to compete or take their home off the market and wait for better times.

I believe this is what is happening in Dublin – inventory is dropping and the competitive pricing is leading to an increase in resale homes. Many buyers still like homes with a yard in established neighborhoods not so highly congested as the newer developments.

It’s still a buyers market in Dublin and a great time to make a good deal on a home purchase.

If you’re interested in exploring bank owned properties, call Paul @ 925–963–4246

If you are looking for new construction, call Tracey (she has over 8 years of experience in new home sales and knows how to get you the most bang for your buck) 925–984–1890.

Ginny can help you explore the best deals available on resale homes in Dublin – 925–699–3328

According to DataQuick and other sources, the rate of foreclosures in the East Bay is accelerating. Lenders are implementing programs to expedite the process of removing REOs (bank owned properties) from there balance sheets. We are also hearing reports that they are delaying the process in areas where they already have high REO inventories.

Taking a quick look at two Internet resources, we find the following stats for Danville and San Ramon, CA:

Home sales activity is picking up in Danville and San Ramon. If you need to sell, now is the time to jump in. As part of your due diligence, be sure to identify any homes in your immediate area that are in the foreclosure process.

Pricing your home right to compete against bank owned properties is a must in this changing real estate market. We can help – Call Ginny at (925) 699–3328

A search on RealtyTrac shows 1,559 properties in the foreclosure process or being bank owned properties. A Yahoo real estate search returns 1,196 foreclosure properties.

Yesterday, it came to my attention that a townhome that was listed at $479K last summer is now listed at $350K. A similar unit in the complex has been sitting on the market priced at $375K since January.

This is not good news for homeowners, but on the other end of the spectrum – it is great news for buyers and investors. There are many great REO (real estate owned) properties available for sale. And the numbers are climbing daily. Bank owned properties, in good repair, represent solid investments for first-time buyers and investors.

It’s also a great time for move up buyers, but they will have to face the reality of taking a lot less for their existing home than would like to. Move up buyers need to focus on the buy side savings which should be substantial.

If you are interested in bank owned properties, short sales, or foreclosures in Concord, CA – give Paul a call at (925) 963–4246.

This is a great time to make a good deal on investment properties in Concord.