The Campbell real estate market continued to show cautious signs of improvement as the number of foreclosures declined substantially and the quantity of houses sold surged. According to a June 18, 2010 report from the Mercury News, “Santa Clara foreclosure filings dropped more than 40 percent last month in Santa Clara County compared with May 2009, the sixth consecutive month that default notices declined from their year-earlier levels. A total of 778 notices of default were filed in the county in May, according to a report released Tuesday by ForeclosureRadar, down from 1,339 in May 2009, and down from 966 in April 2010. In San Mateo County, 328 default notices were filed last month, down 22 percent from May 2009, and flat from April 2010. Statewide, default filings slid by 43 percent. Notices of default are the first step in the foreclosure process.” The report by Sue McAllister went on to note that “O'Toole suggested banks are purposely slowing the process to avoid dumping too many foreclosed properties on the market at the same time, which could drive down home prices further. But others who track the lending industry and foreclosure situation say reasons for the decline in foreclosure filings are more complicated. One reason for the slower filings despite rising homeowner delinquency is that lenders and loan servicer s — the companies that handle foreclosures and loan modifications — are overwhelmed by the number of customers seeking help, said Paul Leonard of the Center for Responsible Lending's California office, in Oakland.”
More Campbell homes for sale were actually being purchased, and were bought for higher prices in the month of May. The Mercury News observed that the average price of a previously owned single family home increased 23 percent from May 2009 and 6.4 percent from April 2010 to clock in at $585,000. The number, reported by MDA DataQuick, was the highest in nearly two years. The mixture of homes sold in the San Diego region has shifted over the past few months, from a large percentage of foreclosures and short sales to more middle and high end properties. The number of homes sold increased by more than twenty percent from both last month and last year.