San Francisco Bay Area home prices, which were always insanely high, have not fallen to objectively devastating lows – although they’ve certainly fallen.
Foreclosures are up, even within San Francisco proper, but the foreclosure crisis isn’t as bad in the Bay as it is elsewhere in the country. This is partly because foreclosures are slightly more rare, but also because, according to The Street, investors are snapping them up and thus stabilizing the market somewhat:
Foreclosure resales – homes that had been foreclosed on in the prior 12 months – made up 32.6% of the Bay Area’s resale market in February.
More and more California home sales are being paid for in cash – a sure sign of ambitious investors getting ready to buy and hold in hopes of a housing recovery in the next few years:
Buyers who paid all cash – meaning no corresponding purchase loan was found in the public record – accounted for a record 30.9% of sales in February, the highest for any month since January 1988.
While it’s not quite as encouraging as it would be if hordes of happy first-time home-buyers were flooding the markets, it’s still a good sign – there’s hope out there.