Update on Foreclosures in the San Fernando Valley

September 12, 2007

By Jennifer Mann

Here is the latest data available to me relating to the condition of the housing market.  The current inventory of homes on the market in the San Fernando Valley consists of approximately 4% Real Estate Owned (known as foreclosures).  Of these bank-owned listings 80% are under $600,000 price, with the majority being under $500,000.  This is not at the percentage said to negatively affect the prices of the general inventory.

What also may be contributing to keeping values in the green in our area is the fact that this time around, there really are very few bargains to be had among the foreclosures for sale.  When scanning the available inventory in the vicinity of a foreclosure property, you can often find regular listings very closely priced if not lower!   Why is this you may ask?  While there have been several up and down cycles in real estate, this is the first time where lending standards have become so relaxed that almost any Tom, Dick, or Henrietta had been able to commonly borrow 100% or more of the purchase price of real estate.  Yes I said "or more", it's true!  As a result, the banks that are now on the hook for these loans now have foreclosure costs to recoup as well, and this is only two of the factors contributing to high sales prices of foreclosure properties.  

Now back to the conversation on REO inventory in the San Fernando Valley.  If you're looking for a foreclosure to buy, here is a list of a few cities with the highest concentrations of foreclosures under $500,000:

Arleta

North Hills

North Hollywood

Reseda

San Fernando

CLICK HERE TO SEARCH THE MLS

Sources: San Fernando Valley Board of Realtors, Southland Regional Association of Realtors, So Cal Multiple Listing Service, Dataquick

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