In Mountain View from Jan 1, 2012 until June 30, 2012 there were:
16 closed short sales
22 closed bank owned homes
Total sales during this time period were 349
Total % Short Sales: 4.58%
Total % REO Sales: 6 %
Total Percentage Mountain View Distressed Properties: 10.58%
10.58% of all Mountain View sales being distressed is not enough to have a major effect on the overall market. Additionally, 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 much effect at all. Ther are so many employed people looking for homes near Google, Apple, and other high tech companies, that homes are getting multiple offers, selling at appreciating prices, and are almost always in high demand. It is interesting to see there are more foreclosures than short sales which we have not seen in other cities.
If you have any questions about short sales or foreclosures in Santa Clara County please feel free to contact me.