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Residential Real Estate in Some California Areas Got Better Last Year

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By : John Cutts    99 or more times read
Several areas of California experienced improved residential real estate conditions last year. In the counties of San Mateo and Santa Clara, default notices issued to property owners declined, while foreclosure-related sales also dropped. However, analysts cautioned that this might just be temporary as lenders will likely restart the foreclosure cases this year that were halted in the fourth quarter by the robo-signing controversy.

Bank owned properties in Fresno and in other big metro areas of California continued to increase last year, with the decline in the prices of homes also not showing any sign of slowing down in most of these areas. In Santa Clara, however, default notices issued to homeowners fell to 10,052 during 2010 from 15,904 the year before. Meanwhile, San Mateo's default notices declined by nearly 25% to 3,892 during 2010 compared with 5,122 back in 2009.

In terms of the number of California bank owned homes and houses sold as foreclosed, Santa Clara posted a 12% decrease last year to 4,399 from the 2009 total of 5,021. However, properties sold as foreclosed in San Mateo climbed last year by 13% to 1,642 compared with 1,448 during 2009. Both counties' sales and notice figures for 2010 remained higher than 2007 levels, though.

Analysts cited the rise in the number of foreclosed properties in San Mateo County as symbolic of a bigger problem in the state's residential real estate market. San Mateo is considered one of the more affluent markets in the state and analysts believe that it is highly unlikely that residents there are losing their properties to foreclosure due to bad loans.

They stated that it is more probable that upper income class homeowners in the county are being hit by the recession and by the high unemployment rate. This, analysts asserted, demonstrates the nature of the current foreclosure and bank owned real estate problem. Most of them had nothing to do with bad loans anymore, but more with loss of job and income reduction, analysts have added.

They also reported that the condition of the residential real estate industry in most areas of California in 2010 was probably better than most regions as there were more troubled homeowners who were able to save their homes. Short sales and modifications reportedly rose in the state in 2010.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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