The short answer to the question are bank owned homes still a bargain in San Mateo County in 2013 is NO.
This is a chart of all the single family foreclosures sold in San Mateo County in 2013. Of the 113 single family bank owned homes the average sales price vs list price was over asking every month this year except for the 1 home that has closed in November. This was a Fannie Mae Homepath home and they are notorious for overpricing their REO homes and only very gradually lowering the price .
San Mateo has had 38 condos/town homes that are bank owned and sold in 2013. The average sale price was over list price in 8 out of 11 months, all but May, June, and Sept. In May and June there were 4 condos that sold for less than list price, all Fannie Mae listings. In September there was one condo that sold under list price, again a Fannie Mae listing which was over priced to begin with.
So what happened to the great deals you can get with foreclosures? I am sorry but those days are gone. The inventory of homes for sale in San Mateo County is so low and the demand so high that almost every listing gets multiple offers, whether it is a traditional resale, short sale, or San Mateo County foreclosure. Added to that is the fact that there are very few foreclosures that make it to the market anyway. Most of the people who could not afford their mortgages lost their homes years ago. Also, since there has been so much appreciation this year the number of people who owe more on their mortgages than the home is worth is very low. If they can not afford to keep the home is is very easy to sell it and pocket some cash.
So if you are looking for a bargain in a single family home or condo it is not likely you will find it in a San Mateo County Foreclosure.
If you have any questions about buying or selling a home in San Mateo County please feel free to contact me.
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