As of March 2012, most of these properties have multiple offers.
Actually foreclosures in the county are decreasing, it is a healthy trend.
There are however higher numbe of distressed properties in Gilroy / Morgan Hill area.
Hope this helps.
While the rest of communities in SCC area has few and fewer foreclosed properties each month. Gilroy is one of the exceptions.
Jan 2011 July 2011
Auctions 226 245
Bank Possessed 221 275
They are being released gradually which essentially drive the home prices lower.
Keep in mind 95020 has 3.85X more than the county which has 1.4% total default.
In the past when a remote community has good or bad news it signified there is a new cycle.
I interpret that is the beginning of a recovery cycle.
If banks sold all their property for what they could get for it the value of their assets would decrease because they would be receiving far less than the value written on their books. The decrease in assets would require banks to increase the cash they have, reserve requirements, on hand to pay to customers who may demand it. The flood on the market would drive down housing prices further because there would be a gross over supply.
We have to force banks to sell at lower prices now in hopes that it will stimulate the economy. Homes are way overpriced in terms of traditional valuation when you remove the non-traditional bubbles that drove prices too high to begin with. The whole housing mess is a scam that can only be fixed by lower prices.
The actual number of foreclosed homes is actually in the tens of thousands that the banks are holding onto and they are supposed to be slowing releasing them onto the market.
Many foreclosed properties were held off the market for investigation due to the earlier robo-signing by some lenders. The lenders can't release them all at once otherwise; home values would plummet even further.
Prudential Connecticut Realty