Foreclosures Across California Reach Eight Year Low
Initially posted by re-insider.com, on November 14th, 2014
“While California’s real estate market has remained flat throughout the year, recent changes have revealed that things may be making a turn for the best. In addition to September’s jump in sales, a new study has found that foreclosures across California have hit their lowest mark in over eight years – the latest sign that our economy is finally catching up with the housing market.
According to San Diego-based research firm DataQuick, fewer foreclosures were initiated across California in the third quarter of 2014 than any in the past eight years. This is largely an outcome of a recovering market and a declining number of toxic loans made between 2006 and 2007.
The study found that during the July-through-September period, there were a total of 16,833 Notices of Default (NoDs) recorded – 691 fewer than the second quarter of 2014 and a 17.1% drop from the same time last year.
One should also note that the recent drop in foreclosure starts is actually part of a larger trend. Prior Q3, DataQuick found that Notices of Default were declining during the second quarter of 2014 – the lowest since the fourth quarter of 2005 when only 15,337 NoDs were reported. Similarly, NoDs have dropped significantly since their peak in 2009, when a total of 135,431 NoDs were recorded.
“This home repo pipeline isn’t exactly drying up, but it sure is diminishing. Its negative effect on the overall market is only a fraction of what it was several years ago, and is really only still noticeable in some pockets of the hardest-hit markets of the Inland Empire and Central Valley,” said John Karevoll, a CoreLogic DataQuick analyst.
Do you think this is an indication of a stronger market in Q4?” ( End of re-insider.com’s article.)
From MY vantage point, it looks as though this quarter is turning out to be a fairly “normal” one for Southern Orange County. The type that frequently leads to a more robust Spring home buying season – which in this area usually starts between the last week of January, and February 15th.
If you are thinking of BUYING your next home anytime soon, there are two things to consider right now – today. First, there aren’t going to be many foreclosure houses to look for – less than 2% of available houses – and second, you’ll have much better negotiability on regular, non-distressed properties before that Spring buying season begins.
Give me a call – at (949) 887-5305 – or shoot me an email – to BobPhillipsRE@gmail.com – and let’s talk about your real estate goals.