Are home owners in South Bay out of the woods yet?

Asked by Sam Shueh, San Jose, CA Thu Sep 15, 2011

Here are the recent progress or persistent default statistics in the Santa Clara County per household:
Jan 25, 11 Sept 1,11
South county 4.5% 4.6%
East SJ 3.4 3.0
(Evergreen inc)
Downtown SJ 2.9 2.2
No Valley 2.5 1.9
Blossom V 2.5 2.0
& South SJ
Central SJ 2.5 2.0
LG 1.5 1.3
Campbell 1.1 0.9
Santa Clara 1.0 0.9
PA/LA 0.3 0.2
Sunnyvale 0.2 0.2

The defaults include, notice of default, homes are to be auctioned and bank possessed.
The ratio of all three are consistent from month to month (e.g. 30, 35, 35%) this year.

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Michael Cheng’s answer
Michael Cheng, Agent, San Jose, CA
Tue Oct 18, 2011
While the national market has another 2-3 years of rough times to work through, owners in the South Bay are probably in one of the best positions in the country. Jobs here are plenty, especially high paying jobs. While the rest of blue-collar America struggles from week to week, prudent home buyers in this area have reaped the benefits of the current wealth redistribution and can approach deals armed with large buckets of cash. Many are putting down 30-40% or even all cash on homes over $1M. So, it's quite likely that the South Bay will lead the rest of California into recovery over the next year.
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Thuan Nguyen, Agent, San Jose, CA
Sat Sep 17, 2011
Hi Sam,

My opinion is home owners are in no way out of the woods. There is still a shortage of jobs. Without jobs, home owners and those looking to buy will continue to struggle to make the money needed for mortgages and/or down payments. A couple headlining indications of our grim jobs outlook: BofA is laying off people nationally and Solandra just went belly up. This is why President Obama is pushing his new jobs bill but it is arguably just another temporary fix. When a more permanent/stable fix to our employment issue is found then home owners can relax a little.

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