More than a third of the resale homes sold in the San Francisco-Bay Area were foreclosed resales. In addition, builders of new homes saw their sales fall to a record low in January with new construction overwhelmed by competition from the foreclosure resale market.
In January 2011, 253 newly constructed homes were sold in the Bay Area, down from the previous record low of 264 homes in January 1993 and the lowest month-on-record for new homes sales in the history of DataQuick’s survey.
Foreclosure resales rose in January to represent 34.7% of the Bay Area’s resale market, the highest level since February of 2010.
Analysts say that foreclosure resales are now a substantial part of the market and luring buyers from new sales and sales of other existing homes.