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December Government foreclosed houses sales increased in CA

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By : John Cutts    99 or more times read
The percentage of housing sales accounted for by bank and government foreclosed houses in San Francisco Bay Area, California, increased last December 2010. This also led to declines in housing unit prices in majority of the counties covered by the Bay Area. Both year-over-year and month-over-month home prices in the region registered a drop.

Prices of homes dropped in all counties of the Bay Area, with non-foreclosed and foreclosed homes in Napa registering the biggest price drop at 13% between November and December 2010. The median price of homes in Napa was pegged at $310,000 last month. For the whole Bay Area region, median price for resale condos and residential properties declined from $380,000 in November to $375,000 last month.

California foreclosure homes accounted for 31% of all housing unit purchases made in the Bay Area in the previous month, registering the highest percentage since March of 2010. It also marked the fifth month in a row that the percentage of sales accounted for by foreclosures has risen in the region. According to area realtors, part of the reason for the increase in foreclosure sales is tight credit standards, which prevent homebuyers from securing more money to purchase pricier residences.

December sales of housing units, including both bank and government foreclosed houses and non-foreclosed dwellings, totaled 7,178 in the Bay Area, representing an 18% increase from November 2010, but posting a decline of 8.3% when compared with December 2009. Around 33% of total units sold were accounted for by properties that are in the half million and above price range.

This represents a decline from the 36% recorded in November as more buyers opted for cheaper properties, particularly those from lists of foreclosures. The huge percentage of sales accounted for by foreclosed properties led to declines in prices in all counties, with Santa Clara recording the smallest decline at 3.2%.

Housing unit sales also declined in all counties of the Bay Area last month, except for Napa, which recorded a sales increase of 4.7%. The rest posted decreases in total sales, even for low-priced bank and government foreclosed houses, with Marin recording the biggest drop at 15%.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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