Bay Area Foreclosures Hits New High
The front page of Sunday’s San Francisco Chronicle brought more bad news on foreclosures. The article titled “Neighborhoods Crumble in Wave of Foreclosures” talked about how Antioch has 23 foreclosures for every 1,000 homes and specifically how Catanzaro Way has had more than 30 percent of their homes foreclosed upon.
The foreclosure rate in Antioch is seven times that of the region as a whole and nearly 1,000 percent higher than it was a year ago. They now have twice the bank repossession rate of greater Stockton, an area often cited as the No. 1 foreclosure spot in California.
This is very unfortunate for the owners but could be an opportunity for real estate investors who can buy and hold for the long-term. Some houses selling for $500,000 last year are now on the market for $400,000. I’m sure you could make a lower offer and get a stellar deal. Realistically though, to make a profit on something like this you’d either have to move into the house and wait for the market to correct itself (could take several years) or rent out the house. Chances are the rental market is tough because others in the same situation are trying to do the same.
Are there any investors or real estate agents out there who have experience in this sort of market? What is the best approach to making a profit on foreclosures in a downward trending market? Please add your comments below.