San Jose home auctions continued to get loaded with residential properties, but house prices held up.
In February this year, San Jose was among six California cities that were able to hold back the downward price pressure of foreclosures. Homes in San Jose suffered only price discounts averaging 12 percent, far below the average price discounts of 31 to 33 percent in Memphis, Phoenix and Milwaukee.
In another study of home prices in a number of cities, only 12 percent of homes for sale in San Jose suffered price discounts averaging 8 percent.
The number of pre foreclosures in San Jose and the inventory of foreclosed homes in San Jose contributed to the sharp 27-percent year-over-year increase in foreclosure postings in the San Jose-Santa Clara-Sunnyvale metro area in 2009 and in the continued flow of foreclosure postings in January this year in Santa Clara County.
In the county of Santa Clara, where San Jose is the administrative seat, foreclosure postings climbed up in January by 37 percent compared to December. Despite the increased foreclosures, however, the median sales price for existing homes in the county rose by 17 percent year-over-year to $490,000.
According to analysts, one sign that the foreclosure crisis is still lingering in the San Jose area is the longer time distressed houses go from being notified of delinquency to being listed for the San Jose home auctions.
In Santa Clara County, the foreclosure process has been taking 7 months to complete, up from 143 days in August 2008. Analysts said that this meant homeowners were trying to work out loan modifications but later fail either because of their inability to sustain the restructured payments or their inability to pass lender modification requirements.
Chase, among major lenders with loan modification programs in San Jose, reported that it has modified around 60,000 mortgages in all its markets nationwide and has been working out 7,100 more loans under the Home Affordable Modification Program.
In January, a total of 4,850 housing units in Santa Clara County were listed for public auctions, but only 437 homes were actually foreclosed upon and repossessed or sold off. In January 2009, a total of 1,728 houses were posted for auction sale, but only 457 units were actually repossessed or sold off.
Similarly, more properties are expected to get listed for public San Jose home auctions, but a significant percentage would be saved due to loan modifications or strategic deferrals by lenders.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites