In Redwood City from Jan 1, 2012 until June 30, 2012 there were:
46 closed short sales
22 closed bank owned homes
Total sales during this time period were 363
Total % Short Sales: 12.6%
Total % REO Sales: 6%
Total Percentage Redwood City Distressed Properties: 18.6%
18.6% of all Redwood City sales being distressed is enough to still haves some effect on the overall market. However, as inventory is still so low unless these homes are truly physically distressed, which is more common with bank owned homes at this level it probably will not have a long lived effect. It is interesting to see there are twice as many short sales as bank owned sales.
If you have any questions about short sales or foreclosures in San Mateo Clara County please feel free to contact me.