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Increase in Foreclosures Drags Home Price in Northern California by 41 Percent

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By : Leticia Carvalho    99 or more times read
Median home price in Northern California went down by 41 percent in October as home buyers continue to buy foreclosed properties. From $631,000 of last year, average price is now down to $375,000.

This is around 6 percent lower than the median price in September. It also exceeded the peak price of $665,000 last year.

The trend experienced in the nine-county region is primarily because of sales in low-cost inland properties. Also, the sales of bank foreclosures play a big role.

Though the government and lenders have been helping home owners with loan repayments, California have experienced increase in foreclosures. This is specifically true in the inland counties of Merced, Riverside, San Bernardino and the cities of Modesto and Stockton. This rise has given bargain-hunters a number of choices to feast on.

Just last month, sales of properties in San Francisco increased to 7,613 which is a 39-percent increase from last year, and almost 5 percent from the preceding month.

Sales in October were the highest in a long time since mid-2007 when sales reached 7,964.

These figures prove that buyers are not discouraged by the financial crisis being experienced by the US. Despite the recession, housing market in California continues to boom. Bargain prices of repossessed homes overshadow the threats of an aggravating economic condition.

Almost half of the sales last month are from foreclosures. Majority of the sales sold are in the counties of Contra Costa, Napa and Solano.

Sales in Contra Costa increased by 87 percent as median price in the county dropped to $285,000 a record-low 46 percent from last year.

Even in Southern California, the same trend was experienced. Average home price went down to $300,000, a 33-percent reduction, as sales increased by more than 60 percent. Expectedly, more than half of the sales involved foreclosure properties.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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