San Jose Foreclosures for Sale Cut Home Values by Billions

by Simon Lindsay on cities

San Jose foreclosures for sale contributed significantly to the reduction of total home values in the area by $9.3 billion since the start of the year, based on data from a real estate marketing company. The loss represented nearly 3 percent of total home values in the area.

The loss in home values was even more staggering last year when total home values in the San Jose metropolitan area were cut down by $60.6 billion.

Compared to other metro areas in the country, the San Jose area ranked 20th based on percentage of total value loss for the 11-month period from January to November. The other two California metro areas that lost substantially since January were Los Angeles and San Francisco.

Los Angeles lost $60.8 billion in home values while San Francisco, the seventh in the metro area ranking, lost $34.3 billion. Last year, the San Francisco area, which includes the counties of San Francisco, Marin, Contra Costa, Alameda and San Mateo, lost a total of $139.2 billion.

Home values in the San Jose area continued to deteriorate because of continued foreclosure actions in the area. In another report on metro area foreclosures in the July-September quarter, nearly 8,200 residential units in the San Jose area were notified of default or foreclosure, many of which were already repossessed by lenders and posted as San Jose foreclosures for sale.

The pace of foreclosure in the area stepped up by 2.7 percent compared to the previous quarter and by 28.8 percent compared to the same quarter last year. About 1.3 percent of all households in the area were put into the foreclosure process during the quarter.

According to analysts, while housing values in the Silicon Valley generally declined this year, home prices in the area increased in October, with the median sales price in the Santa Clara area rising by almost seven percent from the median price in October last year.

To estimate collective home values in metro areas, the real estate research firm used a proprietary formula that considered home prices whether the homes were sold or not.

Meanwhile, Larry Stone, assessor of Santa Clara County, said that the system of estimating property values for tax purposes is different. He said that the county lost a total of $18 billion in residential property value since January.

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