This is the ForeclosureRadar chart for all of San Mateo County foreclosure filings for the past 12 months and you can see the Notice of Default (NOD) and Notice of Sale (NOS) are almost equal.  Unless your head has been in the sand, you’re likely aware that the major banks stopped issuing NOD’s several months ago because of Robo Signing issues.  These issues aren’t totally cleared up the the major banks are gearing up to send out the notices in 2011.  So hold on to your hat when the flurry of NODs hits the mail.  It will be a storm of activity.

Now let’s look at the same data for  the city of San Mateo. It looks a little different than the County’s data.  More activities here but there are NO deals. Those are gone.  You can buy a foreclosed property in San Mateo under market price but not dramatically so.  The banks want to see these properties listed near to market so they can recapture as much of their losses as possible.  One really can’t blame them as they’ve lost billions of dollars due to the stupid  lending programs they pushed, can one?

What this chart isn’t showing you is that there are currently 46 properties in foreclosure in San Mateo, 134 properties that are going to go to auction sometime soon, and 136 properties in pre-foreclosure (those receiving NODs).  These are the hidden numbers for the City of San Mateo today, 450 properties that may show up for sale by banks.  I use the word may because some will find funds to pay the bank back and some will sell on the market before the bank forecloses. These properties are in all of the zip codes for the city of San Mateo and are comprised of condos, townhouses and single family houses.

San Mateo,CA – Foreclosure Filings

Let’s take a look at Burlingame and Hillsborough data.  The two towns are combined because they share the same Zip code and ForeclosureRadar’s data is zip centric for this chart.  NOD’s are up over sales by November 2010.

Now for the hidden numbers for Burlingame and Hillsborough.  Burlingame has 5 foreclosed properties, 22 going to go to auction soon, and 21 in pre-foreclosure, for a total 48 distressed properties.  Hillsborough has 3 foreclosed properties, 11 going to go to auction soon, and 7 in pre-foreclosure, for a total of 21 distressed properties.  In Burlingame there are a few condos in this total but mostly single family homes.  In Hillsborough, all are single family homes of substantial size.

94010 – Foreclosure Filings

Finally, let’s not forget Foster City. It too has had activity this past year.  NODs are up but NOS are down.  For the moment that is.  Foster City has 8 bank owned  properties, 26 going to go to auction, and 39 in pre-foreclosure status, for a total of 73 distressed properties. These properties are made up of condos, townhouses and single family houses.

The big question is what’s coming.  We know of Shadow Inventory, a term for houses that have been foreclosed and are bank owned but not on the market.  The banks are holding them off, for some unknown reason.  Perhaps it’s the same reason they’re giving for making lending so impossibly difficult today.  We also know that prices for the bank owned properties are going up from last year’s incredible bargains.  If you are an investor and have cash, you might do okay, and something pretty good deals.  If you’re the average buyer who still needs a loan, should you try to buy a bank owned rather than a short sale?  I’d go for the short sale right now.  Those prices are generally better, you negotiate with the owner and not the bank but you must be patient and be willing to wait it out for the bank to approve the offer and if there are more loans on the property than the mortgage expect it to take even more time as the listing agent must negotiate with all banks connected to the property.  It can be a great way to get a property under market value today.  As for tomorrow and 2011, my crystal balls are a little cloudy today, like the weather.

The many condo communities in Foster City offer some nice  amenities and differ in layouts.  Some communities look like townhouses, and some are multiple level.  Sand Harbor. Isle Cove and The Islands have many units facing the water.  Most all have pools, tennis courts, parks nearby and other amenities.  There are also true townhouse communities in Foster City.  These homes are more like row houses.  They own the land they’re on, they are larger then the condos, and have yards attached, either in the front or back, or for some, both.  Both kinds of homes are PUD’s (Planned Unit Developments) and have home owners dues.

The pricing trends had been relatively stable over the past couple of years.  The bottom of the condo market was the end of 2007 and start of 2008.  Prices have jumped up and down depending upon the number of condos available to buy at any one time.  Remember, you get a great value when you purchase a condo in Foster City.  Not only do you buy a home that was never converted from an apartment, but was actually constructed to be a condo, but you get a lot of square footage for your dollar.

Altos Research uses the Market Action Index to talk about how the housing market in a community is really doing.  The Market Index for the Foster City Condo Market from last week’s data and it shows that the market is still a Strong Buyer’s one. With many different condos to choose from, a buyer can negotiate for a fair price.  We aren’t now, and haven’t in the past, seen many short sales or bank owned condos either.  Most of these are what we are calling Regular Sales.

What makes Foster City a great place to live is its location.  Sitting right in the middle of the San Francisco Peninsula it is almost the same number of miles to drive north to San Francisco as it is to drive south to San Jose.  The population in Foster City likes to play out doors.  The city boasts more parks per square foot then any other city on the Peninsula.  The Bayside Trail runs along the eastern shore of the city and always has bicyclists, walkers, roller bladers, and the like enjoying the bay views and air.  Tennis courts are sprinkled around town, many with lights for night playing.  The city has a vibrant Parks and Recreations Department that includes lessons in sailboarding, kayaking, sailing and rental the of kayaks, paddle boats, and sail boats.

We love to show people Foster City.  It is the first planned community built in California and affords perfect weather summer, fall, winter and spring.  Would you like more information?  Please let us know and we’re happy to provide it to you.

Here are some Condos and Townhouses currently for sale in Foster City.

Back in 2005, the California State Legislature pass a bill making it manditory to put your headlight on when it is raining during daylight hours.  If you’re out and about this week, make it a point to do this.  Your life, my life and anyone else’s life is at stake.

It’s really easy to do, too.  So why isn’t it being done and why hasn’t this been publicized more?   Beats me, but I am telling you this.  So do it!

Just in case you think this is another urban ledgend, here’s the law.

When Buying in a Buyer’s Market here’s What to watch out for.

So you are a buyer in a buyers market – what an excellent time to be in the market to purchase property!  Inventory is available and sellers are looking for you, however there are still items you need to watch out for to protect yourself and to make the most of your home-buying investment.

Just because it is on the market doesn’t mean it is for sale!

This can be a difficult concept for many buyers to understand but should be one you are familiar with.  While foreclosures and short sales are a great way to purchase property at below market value, the reality is that unless a qualified agent is handling these properties the chances of closing go down considerably.

When looking to purchase a short sale or foreclosure you should discuss the following with your agent:

Multiple Contracts – When you are purchasing a home and put it ‘under contract’ you should be the only buyer pursuing that property.  If the listing agent will be submitting your contract as one of many, to the lender or even worse signing multiple contracts, you are in essence entering into a blind auction for real estate.  Unless you are an experienced investor, this is likely a situation you will be uncomfortable in.  Think twice about whether you wish to be in a bidding war when you hear this is happening.

Inspection Allowances – Regardless of what type of property you decide to purchase you need to make certain you have the right to have a professional fully review the property and report to you their findings.  This is critical.

Submit a Strong Contract – treat a short sale or an REO like and other contracts and put your absolute best offer forward.  If you truly want to purchase the property in question make your offer count.  The days of low-ball offers are over.

Pre-Qualification is More Important than Ever

In today’s market any seller will want to see that you are a strong buyer and have been fully pre-qualified with financing.  You will want to meet with at least one (if not two) mortgage brokers or lenders to get pre-qualified.  You will want to make certain you are comfortable with:

• The Mortgage Program
• Your Monthly Payment
• Any Projected Payment Increases
• Payment or Interest Rate Adjustments and Time Periods
• Laying out a financial strategy prior to finding a home allows you to confidently target homes in your price range.

Hire an Educated Experienced Agent

A short sale or foreclosure purchase is not a typical real estate transaction.  They can be difficult and come with their own specific challenges however the right agent can help guide you through  this process and help you purchase the property you are looking for.  You need to have a well trained agent such as a CDPE (Certified Distress Property Expert) who has taken hours and hours of specialized training to assist you, and you need to look no further than here, as I offer this designation and background for you.  My contact information is to the right of this post and you can reach me by phone or email.  I’m here to help you through the purchase of any distressed property you see out there.

Last week the condo market in Foster City CA had 43 properties listed for sale with an Average Price of $601,502.  It’s taking an average of 122 days to sell one, which is going up from previous weeks.  Prices have come down a little as has the number of condos for sale. Our MLS doesn’t differentiate between a townhouse sitting on it’s own piece of land (a PUD, Planned Unit Development) and a condo, so these reports also include townhouses.  Townhouses should be reported as single family houses but unfortunately they’re grouped into these reports.  These townhouses are always in the top tiers of price in Foster City.

Since Foster City is a planned community and every townhouse or condo was built to be just that.  There are no apartment conversions in Foster City so  if you buy a condo here you will have a unit that is larger than most of the others you’ll likely find in surrounding communities.  When you look at the division of the market, into the Quartiles, the top Quartile is make up of  townhouses.  Quartile two might have townhouses and it might include large condos. The third Quartile offers condo and small townhouses and the bottom Quartile shows the average condo.  This chart gives you a nice picture of how the market is doing in each price level.

Another way you can get a picture of a real estate market is to look at price trends.  Prices have stabilized and remained pretty steady over the past year. When you decide to live in Foster City you know you will get value for your home and the equity will hold pretty steady.  The Market Action Index shows what’s happening in the market and like the single family houses in Foster City, we’re in a balanced market.  If you hoped to grab a deal, you’re just way too late.  The  market sank earlier this year and we’re seeing a nice recovery now.  There is a good supply of condos and townhouses to choose from and these offer a more affordable way to get to Foster City schools.  Foster City has wonderful parks, the bayside path to walk or ride your bike allowing for outdoor living almost all year round, perfect weather and easy commutes to bio-tech companies in South San Francisco or down to Silicon Valley.

We’re here to show you some great homes.  If you’re a First Time Buyer, come to a First Time Buyer’s Seminar on Tuesday, September 15th between 6:15 – 8:15PM in the Park & Rec’s Lagoon Room. There’s free parking, lots of good information for you, and all you need to do is register here.  Come and learn how you might qualify for the $8000 First Time Buyer’s Tax Credit and participate in the Bay Area Million Dollar Challenge we have to try and help 125 first time buyers this year.