San Francisco foreclosed homes for sale dropped in number in the July to September quarter, but the number is expected to rise because of the sharp increase in defaults during the quarter, according to two foreclosure tracking companies.
Default notices in the San Francisco Bay Area increased by more than 25 percent compared to the same three-month period last year, with a staggering 72-percent increase in the city of San Francisco. The city posted 607 notices of default, marking an increase of over 3 percent from the April to June postings of 353 units.
Actual foreclosures in the Bay Area dropped from 12,093 units to 7,462 units compared to the third quarter last year, with foreclosures in Contra Costa dropping by nearly 44 percent to 2,053 units; Alameda by over 30 percent to 1,760 units; and Santa Clara by nearly 43 percent to 1,237.
According to housing analysts and company researchers, San Francisco foreclosed homes for sale will increase in the coming months as the defaulting mortgages will ultimately go into foreclosure and as distressed mortgages held back by moratoriums or loan modifications will eventually fail and go through the foreclosure process.
The increase in foreclosure filings in the Bay Area was also described by another foreclosure monitoring firm in its nationwide report for 203 large metro areas in the U.S. for the July to September quarter of 2009. In the San Francisco, Fremont and Oakland metro area, nearly 23,000 residential units received default or foreclosure notices, accounting for 1.4 percent of all housing units in the area or one unit out of every 74 units in the area.
Compared to the previous quarter and to the same quarter last year, the foreclosure rate for the Bay Area showed increases. The rate rose by 6.6 percent from the second quarter and rose by more than 22 percent from last year.
But despite the expected increase in foreclosures in the Bay Area, housing analysts are positive about the recovery prospects of the city of San Francisco. They said that the city has been resistant generally to difficulties suffered by the state of California, as shown in the increase of home values in the city.
Additionally, about 37 percent of houses for sale stay in the market for only around 21 days, with sales prices averaging 2.5-percent above asking prices because of multiple offers.
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