The number of bank-owned (102) and proposed short sales (185) listed in San Francisco has ticked up 6 percent over the past week to a new absolute high of 287 or 16 percent of all active listings (1,792).
On a year-over-year basis, the number of distressed listings is up 49 percent, up 3 percentage points as a percentage of all listings.
Bank-Owned And Short Sale Listings On The Rise In San Francisco [SocketSite]

Comments from “Plugged-In” Readers

  1. Posted by anonymous

    The St Regis Unit 31B foreclosed on 5/3/10. It had been on the market for $1,450,000 and never sold.

  2. Posted by Missiondweller

    Fascinating nobody commented on this.
    Cognitive dissonance?

  3. Posted by anonee

    total number of units in the city?
    ~190,000.
    in the midst of the great depression redux, we are now seeing less than 300 properties in sf in distress.
    spin that however you please…

  4. Posted by diemos

    “spin that however you please…”
    OK. Prices are set at the margin. Therefore the significant number is the fraction of properties for sale that are distressed, not the fraction of properties that are distressed.

  5. Posted by Brahma (incensed renter)

    Just to add to what diemos wrote, seems like we’re defining “distressed” in this case as those properties for sale which are REO or short-sale candidates, which means that even if we were not limiting our homes of interest to the set of those on the market, we’d still have to limit our criteria to those homes that have a mortgage on them, and not every property in The City does.
    One more inclusive definition of “distressed” would include those properties which are being sold due to an unsatisfied tax lien, mechanics lien, civil judgment, etc. I realize those aren’t very common.

  6. Posted by anonymous

    anonee, the number of “distressed” sales listings in Stockton is a tiny fraction of the total number of homes in Stockton. Market in Stockton must be healthy and robust.
    SF had about 440 MLS sales in June (July is looking to be slower right now). 300 listings are distressed. Do the math.

  7. Posted by geoff the realtor

    How does Socketsite obtain its distressed properties count? I can choose “REO” or “Known Short Sale.” Or I can choose both, because there’s going to be overlap. That overlap is the problem with the search I have available. Getting a precise number would require a lot of time.

  8. Posted by Brahma (incensed renter)

    geoff the realtor wrote:

    I can choose “REO” or “Known Short Sale.” Or I can choose both, because there’s going to be overlap. That overlap is the problem with the search I have available. Getting a precise number would require a lot of time.

    geoff, that’s what computer programs are for 🙂 I don’t have any insight into the socketsite editor’s technique, but once you have the data, even if you’re not a programmer, per se, you can load it into some application where you can deal with the overlap in the usual way. You’re really not limited to the direct features that crappy web app on top of the MLS database offers.

  9. Posted by geoff the realtor

    So what is one that I could use?

  10. Posted by anonee

    “Therefore the significant number is the fraction of properties for sale that are distressed, not the fraction of properties that are distressed.”
    except that by definition, distressed properties have to go to market (to alleviate the distress).
    so if there were more distress in this local re market we would be seeing way more listings as a percentage of the total properties.
    after all, we’ve been hearing about 40-50% off and arm reset tsunami and negative cash flow investment properties etc…in this ‘greatest collapse of our lifetimes’.

  11. Posted by tipster

    Reo is owned by the bank. A short sale is NOT owned by the bank. Where is this overlap?

  12. Posted by anonymous

    We will soon see more distressed inventory. The inventory has to work its way through the backlogged legal system. Keep in mind the government delayed foreclosures multiple times and now that inventory has been released. Couple the old with the current distressed inventory and we will soon see the increase. There is an increase in $1M+ properties in this inventory.

  13. Posted by anonee

    i’ve heard that one before.

  14. Posted by anonymous

    @ anonee, I am seeing it everyday. 12 hour days. 6 day work weeks. Trust me it’s coming.

  15. Posted by anonee

    “Trust me it’s coming. ” so far it seems to be a mere trickle compared to the doom and gloom that has been endlessly paraded. i do not doubt that
    we will see more. but i do think that sf re has performed way better than the bears have predicted.

  16. Posted by sanfrantim

    I’m seeing it in my hood (Noe) too. I think the modestly positive news in the market has encouraged sellers (including banks) on the sidelines who’ve been waiting out the bad news, to list now, even to accept modest losses. Hence, the sharp uptick in inventory recently, including distressed listings, and corresponding downward pressure on prices. I think we have yet to see this play out.

  17. Posted by geoff the realtor

    Reo is owned by the bank. A short sale is NOT owned by the bank. Where is this overlap?
    Obviously, if it starts off as a short sale, doesn’t sell, and becomes an REO. Has it already been tallied?

  18. Posted by lol

    It all depends on whether the field is handled as a checkbox or a radio button. As a radio button, they will be mutually exclusive. As a checkbox the human feeding this field will decide whether he considers the REO to be a Short Sale as well for whatever reason (to get more hits?). The latter would be an explanation for the overlap.

  19. Posted by Kathleen

    Banks are sitting on REO inventory in San Francisco. Expect to see REO inventory to increase.

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