By Leah Moskovic
Foreclosure rarely occurs at the top of the housing market, but on Monday a revamped
"We'll see a little bit of both-stabilization and foreclosures," said Anne Van Dyke, a broker associate with The Grubb Company, an
Since 2008, instances in which a borrower cannot pay the mortgage loan on his or her property and a lender sells the property at a moderate loss have increased in Berkeley as a final effort to avoid foreclosure, according to Bill McDowell, co-owner of Berkeley Hills Realty.
Property values in the
"Since the market has gone down, people are reluctant to sell for less than what they think their house is worth," McDowell said, adding that because of this, it is difficult for buyers to purchase better homes, when five years ago they could put a down payment on a new house using a type of interim financing that is no longer available.
The federal reserve has kept interest rates "extremeley low" in an effort to support housing credits for first-time buyers and foster housing stability, according to Robert Helsley, UC Berkeley Professor and Chair in Real Estate Development at the Haas School of Business.
"We expect to see the markets stabilize, the foreclosures to go down, the real estate owned by banks to go down, and for prices to slowly firm up," Helsley said. "But we don't expect dramatic returns. Activity will remain pretty low-particularly price appreciation-for the next while."
Barbara Norkus, broker and owner of Capri Real Estate Services, said the entry-level, first-time buyer market in
At the bottom of the market, the Berkeley Housing Authority-a rental assistance program-has been met with more demand for services to low-income families since the beginning of the economic crisis in 2008, according to Rachel Gonzales-Levine, a management analyst for the authority.
"Anecdotally, we have more and more families that are housed in properties facing foreclosure calling us with lots of questions," Gonzales-Levine said. "They want to know if they have to move and what laws are applicable to them."