The good news is that foreclosures led to a slight increase in Bay Area home sales in July compared to a year ago. It wasn’t much, just 2.2 percent, but it was first time there was  year-to-year increase in more than three years,  according to a Contra Costa Times story. The bad news is that foreclosure sales dragged down the median home price to $470,000, the lowest level in more than four years.
In Contra Costa County, homes sales soared to 1,730 in July, a 30.3 percent increase from a year ago while the median price plunged 41.6 percent to $350,000. In Alameda County homes sales stood at 1,428, a 9.4 percent decrease while the median price of a home dropped 27.3 percent to $440,000. In San Mateo County, 648 homes changed hands, an 11 percent drop while the median price dropped 16.3 percent to $670,000. In Solano County, 592 homes were sold, a 45.1 percent increase while the median price  plunged 33.7 percent to $250,000.

Observers say that foreclosure  will help clear out the inventory of homes on the market. That has to happen before prices can rise.   What’s your take on this? Are  foreclosures sales helping or hurting the market?