Foreclosures down 42% in San Francisco

Socketsite.com which is usually the Cassandra of doom actually revealed today the minuscule amount of foreclosures as compared to nearby outlying counties comparing last quarter 2008 to last quarter 2007. This shows the resilience of San Francisco real estate market. The major reasons I can site are the laws of supply and demand, limited housing stock and highly desired place to own a home. This explains also why we are not seeing large percentage drops in home values in San Francisco as we are seeing in the rest of the Bay Area. As long as there are jobs, limited housing stock and a high desirability to live here we should not see any huge amount of foreclosures. The other reason is that many of the homeowners in San Francisco have a larger amount of equity in their homes so they usually buy and hold over the long term. See below