Surprising Facts About Bernal Foreclosures and Home Values

Bernal Heights architect Mason Kirby was playing with Zillow this morning, and after doing a manual tally of the listed properties, he  had a surprising epiphany:

A VERY SCIENTIFIC observation– on Zillow, in Bernal Heights, there are 55 foreclosures and 42 homes for sale. This is like, Wow! — Wow that the number of foreclosures is greater than the number of homes offered for sale, but also wow, because it seems like the average price of homes that are for sale has been uninfluenced by the quantity of neighboring foreclosures.

On the map above, for example, the properties without price tags next to them are foreclosures.

Obviously, Bernal Heights is not like, say, Modesto. Still, this does seem like a paradox: Bernal home sale values are not being dragged down by the large number of foreclosed properties in the same area.  But every one of those foreclosures is traumatic. (CUE: Occupy Bernal).

8 thoughts on “Surprising Facts About Bernal Foreclosures and Home Values

  1. I am a witness to one non-traumatic foreclosure story. I live in an apartment in a four-unit building. The owner of the building (an absentee landlord) apparently stopped paying his mortgage sometime in 2009. Eventually, the bank foreclosed.

    Did I worry? Not much. The building was built in 1960, so it’s rent-controlled. There was even a vacant unit at the time (the best one), so an owner wouldn’t have had cause to evict anyone if they wanted to move in.

    In the end, the new owner decided not to move in. He stayed put in his place half a block away. It’s kind of nice having the landlord so close, and not dealing with the old property management company.

  2. Our landlord was foreclosed on about a year ago. (She defaulted about 2.5 years ago.) While we are still in our home, fortunately, we have been plagued by un-attended home repairs, shady bank personnel and con artists trying to extract money from us. It has been years of hassle and the worst part is having no resolution – will we get to stay indefinitely? For 6 months? For 2 years? Because without resolution you can’t buy a new medicine cabinet or consider rearranging your furniture. And in the meantime, rents keep rising all around us. It’s extremely upsetting.

  3. I don’t think all of those are really foreclosures – if you look into the details, many of them are termed “preforeclosure”, meaning the owner is in default, but the banks haven’t foreclosed.

    • Agreed – also note that some of the homes shown with prices are short sales with artificially low prices as a result – I can see two on Putnam St. alone, at first glance. Although these are not technically “foreclosures”, the prices are low compared to the general market in the neighborhood.

  4. more foreclosures to come. the bank settlement yesterday will increase the amount in the pipe. those living in homes and not paying their mortagages will now have to git! (you are welcome for the “bailout” occupy bernal….you got to live somewhere for free for a few months! how nice is that!?!?!?!)

    real price discovery is on the way.

  5. That is interesting, thanks for sharing. In some part it probably speaks to the desirability of our neighborhood overall. I guess it does underline the very big rift between the haves and have-nots, as you mention. While the economy is booming for some, it is busting for others. If I understand short sales and BernalDweller’s comment, those homes add to the “have-not” side of the equation, yes?

  6. Great. The ethnic cleansing of the city continues. I’ve had quite enough of the millionaires descending like vultures on this once working class city.

  7. Our broker believes that image to be a pretty darn outdated outlook of the foreclosure situation…and looking at Zillow today (just 4 days after this post) there does seem to be quite a few less showing.

    Anyhooooo, yes Bernal is fabulous, and no, foreclosures don’t seem to have any effect on any desirable neighborhood’s housing prices. Yay for homeowners, hard for home-lookers.

    Most foreclosures we’ve run into are owners who stopped paying some years ago and the bank has run out of options/patience; I haven’t run into any situations where the bank swooped down quickly – like a fabled, famished bird of prey – onto someone hard on their luck.

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