A 40 Percent Rise in Alameda Foreclosures

Last week, Alameda saw a rise in foreclosures listed on the Multiple Listing Service (MLS) after nearly three weeks of no inventory being added to this segment of the market.

The market added five foreclosed listings in five days. The newly listed properties are all single family residences and range from $422,500 to $589,900.

The properties are:

• 1427 Bay Street -- a two bedroom, one bathroom home listed for $424,800
• 1549 Bay Street -- a four bedroom, two plus bathroom home listed for $424,800
• 1528 Pacific -- a two bedroom, one bathroom home listed for $422,500
• 1009 Central -- a four bedroom, two bathroom home listed for $460,750
• 3246 Garfield -- a three bedroom, two bathroom home listed for $589,900

The increase from last weeks nine properties to today's 15 is a 40 percent increase. This is a big swing in the number and is very concerning. I wrote about Shadow Inventory back in May and was concerned that a large number of foreclosures may hit the Alameda market.

Back in May we saw: RealtyTrac, a search of foreclosures for Alameda show that there is a looming group of homes ready to hit the Island’s Real Estate market. The Website list 93 homes in Pre-foreclosure. The owners have received notice of default, but have not yet been foreclosed. The Pre-foreclosed homes is more than half of what is currently listed on the Multiple Listing Service (MLS). Add to that 53 listed for Auction and another 75 Banked-Owned and that is 221 properties that could add to the rise in inventory.

Today the Island has seen a decline in inventory, but the RealtyTrac numbers continue a significant number of homes in distress.

The Website list 98 homes in Pre-foreclosure and increase from May. Those 98 homes in pre-forclosure are families that are behind on their payments and give the job market many people may continue to struggle to pay. Add to that 71 listed for Auction and another 85 Banked-Owned and that is 254 properties in total. So over the course of the main home selling season we have seen a 13 percent increase in distressed homes.

Not sure what this means in the short term, but my guess is that it will continue to put pressure on home prices, driving them down, until banks clear these properties from their books. The numbers also show that Alameda home owners are having a tough time paying the mortagage.

Alameda Inventory -- Week of September 21

. . . 9/21/2009 . Total 135 . 94501 111 . 94502 24 . SFR 91 . Condo 24 . Multi-Family 18 . Short Sale 11 . Foreclosure 15 . Price Reductions $47 . High List $1,899,000 . Low List $229000 .