Stockton foreclosed homes for sale did not increase in number in September as expected by buyers and brokers, as banks controlled the release of their foreclosed properties, according to research firm Trendgraphix and realtors in San Joaquin County.
Because of the decreased number of foreclosures released by banks, the total number of homes for sale in September dropped by almost 70 percent to 1,158 units, a substantial drop from more than 5,100 units released to the market in September last year.
Consequently, the median home sales price in September remained at $160,000, the same as the August median.
Home loan broker Jerry Abbott explained that there will be no significant change in the home sales price if foreclosures are not released by lenders to the market.
Some realtors and housing analysts however contend that banks have been trying to respond to stepped up efforts by federal agencies to increase loan modifications. Abbott said that foreclosures will increase in 2010 when homeowners who obtained modifications will redefault and when recently laid off borrowers cannot find jobs quickly.
Over the past year, Stockton foreclosed homes for sale and foreclosures from nearby cities dominated the San Joaquin housing market, but foreclosure sales slowed as the pace of short sales increased.
In September, a total of 453 pending short sale contracts and 492 pending foreclosure sale agreements were signed.
Realtors also observed that sales of non-troubled homes have been rising. A total of 319 pending sales of previously owned homes were signed in September, comprising one-fourth of the housing market.
According to Ben Balsbaugh, head of a real estate business in Stockton, the increase in conventional sales was driven largely by investors flipping properties. He said that about 90 percent of conventional sales are flips – when investors buy homes, make quick improvements and then resell them quickly at a profit.
Based on data from Trendgraphix, the median price for non-distressed pre-owned homes sold in September in San Joaquin County was $215,000. The median price for foreclosure homes was $142,000 while the median price for short sales was $170,000.
According to an online foreclosure research firm, the cities which were most battered by foreclosures at the start of the crisis, such as Stockton, Cleveland, Modesto, Toledo, Detroit and Columbus, slowed down in foreclosure activity in the first 6 months of this year while other cities not previously considered hot spots increased in foreclosure activity.
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