In East Palo Alto from Jan 1, 2012 until June 30, 2012 there were:
36 closed short sales
20 closed bank owned homes
Total sales during this time period were 96
Total % Short Sales: 37.5%
Total % REO Sales: 20.8 %
Total Percentage East Palo Alto Distressed Properties: 60.7%
60.7% of all East Palo Alto sales being distressed is enough to still have major 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 almost twice as many short sales as bank owned sales which has also happened in other cities.
If you have any questions about short sales or foreclosures in San Mateo County please feel free to contact me.