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In the 2nd Quarter of 2011, the number of homes lost to foreclosure in California dropped 11% as compared to 2nd Quarter 2010. San Francisco saw a 13% drop.

Bank-owned property sales made up almost 36% of all California resale activity in the 2nd quarter (down from 58% in 2009); in San Francisco, the percentage was about 8%. The large majority of the city’s bank-owned sales and short sales (both are called “distress sales”) are at the lower price ranges and typically in the less affluent neighborhoods. Generally speaking, they have had little impact on home values in the more affluent areas of the city.