San Diego neighborhood foreclosures & short sales have a huge impact on home resales!
As I write this I've just seen a local San Diego neighborhood with average home resale values in our falling market. Suddenly, all three of the currently pending sales are 'short' sales. Two of the active homes are possible short sales as well. Whether these short sales go through, or the banks foreclose and list the homes for 'fast' sales, the entire neighborhood values are negatively affected.
What happens then? All the homes in the neighborhood are suddenly devalued because a few homes sold for less than what they could have achieved without the 'rush to unload them/fire sale' mentality.
What if there are more short sales/foreclosures in this neighborhood? The value of a neighborhood can completely be decimated by a few homeowners who purchased beyond their means or refinanced their homes to 90% or more of the value just a few years back. Now the the foolish ,or in some cases naive behavior, of these homeowners will have a huge monetary affect on all the neighborhood. Conservative homeowners who live within their means, don't take on risky loans and treat theirr home like a piggy bank are adversely affected by the actions of a few. [tags]foreclosure,San Diego real estate,real estate bubble,housing bubble,home foreclosures,San Diego home values[/tags] downtown San Diego condo slaes
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