Bay Area Foreclosures Hits New High

October 14, 2007 by

bay area foreclosuresThe front page of Sunday’s San Francisco Chronicle brought more bad news on foreclosures. The article titled “Neighborhoods Crumble in Wave of Foreclosures” talked about how Antioch has 23 foreclosures for every 1,000 homes and specifically how Catanzaro Way has had more than 30 percent of their homes foreclosed upon.

The foreclosure rate in Antioch is seven times that of the region as a whole and nearly 1,000 percent higher than it was a year ago. They now have twice the bank repossession rate of greater Stockton, an area often cited as the No. 1 foreclosure spot in California.

This is very unfortunate for the owners but could be an opportunity for real estate investors who can buy and hold for the long-term. Some houses selling for $500,000 last year are now on the market for $400,000. I’m sure you could make a lower offer and get a stellar deal. Realistically though, to make a profit on something like this you’d either have to move into the house and wait for the market to correct itself (could take several years) or rent out the house. Chances are the rental market is tough because others in the same situation are trying to do the same.

Are there any investors or real estate agents out there who have experience in this sort of market? What is the best approach to making a profit on foreclosures in a downward trending market? Please add your comments below.

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Posted: 10/14/07 3:04 PM by David Cowgill | Real Estate Loans | Trackback URI

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7 Responses to “Bay Area Foreclosures Hits New High”

  1. Carol on October 16th, 2007 9:30 pm

    I have a blog dedicated to humor and optimism in the face of a severe financial loss in the real estate market. I’m still in favor of RE investing. My blog serves as a support group for the many who have lost money recently, but have no where to turn. Please visit and leave a comment about your experience.

  2. Real Estate Attorney, Miami Beach on October 17th, 2007 9:15 am

    A lot of great properties are available here in South Florida either with short or foreclosure sales, but Realtors tell me that even when buyers find fairly priced properties that they really want, they end up not buying because they are scared of being embarrased. When they tell their family and friends that they have found a great property, even as a primary residence, the arm-chair investors say “what kind of fool would buy in this market?” or “you are dumb if you don’t wait a few more months.” Real estate purchasing requires confidence as well as research.

  3. Real Estate Guru on October 18th, 2007 1:47 pm

    Hi Carol, thanks for the comment and interesting blog you have! I hope some people are able to laugh at the recent downturn but with such large amounts of cash being lost, it might be tough. :-)

  4. Veliko Turnovo Hills on October 21st, 2007 10:26 pm

    Foreclosure notices hit all-time high Inside Bay Area ?!

  5. Real Estate Investor on November 4th, 2007 3:21 pm

    I live in southern california and it is unbelieveable how many home are for sale in my area. The prices are dropping up to 100k. It is still really expensie, but if you have cash saved there is a good opportunity for rental properties

  6. Debt Consolidation on August 4th, 2009 10:04 pm

    Miami beach is perfect area?

  7. Staten Island Real Estate Agent on August 5th, 2009 5:29 am

    If you have the ability to invest and hold for the long term. Foreclosures can provide a great deal in the long-run.

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