San Francisco Home Prices Fall 41% on Foreclosures

May 21, 2009 by · Leave a Comment
Filed under: Real Estate News 

This headlines says it all.  Bottom line is that home prices are too expensive and until they come to a realistic level then we will continue to have turn-over in the real estate market through the foreclosure market.  Heck, if the S.F. price fall some more, I might even consider moving their (But I still am not happy with there state state setup, it really adds up).   

News (Bloomberg):

San Francisco Bay Area home prices fell 41 percent in April from a year earlier as foreclosures accounted for almost half of all sales, MDA DataQuick said.

The median price dropped to $304,000 from $518,000 a year earlier. That’s 54 percent below the peak reached two years ago, the San Diego-based research company said today in a statement. A total of 7,139 new and existing houses and condominiums sold in the nine-county area, a 13 percent increase from April 2008.

“Job losses and historically high foreclosure levels continue to pose serious threats to housing stability,” John Walsh, president of MDA, said in the statement. “In much of the Bay Area, there’s the added problem of ‘jumbo’ loan financing still being relatively expensive and, for many, hard to get.”

Low mortgage rates, the availability of home loans backed by the Federal Housing Administration and discounted foreclosure properties are driving sales across the U.S. Fixed rates for 30- year loans fell to 4.82 percent, mortgage buyer Freddie Mac said today, as the Federal Reserve purchases as much as $1.25 trillion in mortgage-backed securities to push down rates.

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