DQNews Archived Article

California Foreclosures Flat

by Real Estate Analyst John Karevoll
October, 1996

La Jolla, CA.— Lending institutions started foreclosure proceedings on roughly the same number of California homeowners last quarter as in the previous quarter, a real estate information service reported.

A total of 39,039 Notices of Default went out during the July-to-September period, down 0.8 percent from 39,391 for the second quarter and up 18.7 percent from 32,945 for last year‰s third quarter (see chart), according to DataQuick Information Systems.

Last quarter's number was well below the all-time quarterly high of 44,686 for the first three months of this year. "Foreclosure activity is a so-called lagging indicator, meaning that we‰re looking at year-and-a-half old economic distress. While foreclosure rates appears to be declining slightly, foreclosures will be with us until home prices go up another two or three percent, " said Donald L. Cohn, DataQuick CEO.

California home prices have started to inch back up. The third-quarter median was $168,000, up 1.2 percent from $165,000 for the same period a year ago. A recorded Notice of Default is the first step of the formal foreclosure process. The process can take four months or more, and many homeowners either bring their mortgage payments current, deed the property to the lender, or sell their home and pay the mortgage off before the foreclosure process is completed.

DataQuick monitors real estate activity nationwide, and provides information to consumers, lending institutions, title companies and industry analysts. Foreclosure rates declined in Santa Clara County and in some central coast areas (see chart). These areas have all seen significant price increases the past year. At the other end of the scale, foreclosure rates increased in most of the Central Valley, where home prices are flat or still declining.

Number of homes going into foreclosure

				% Chg
County	3Q95	2Q96	3Q96	3Q95/3Q96
Los Angeles	10,084	13,132	12,480	23.80%
Orange County	2,808	3,334	3,123	11.20%
San Diego	2,356	2,842	2,722	15.50%
Riverside	3,088	3,383	3,267	5.80%
San Bernardino	3,540	3,406	3,719	5.10%
Ventura	589	838	728	23.70%
So.Calif. Total	22,464	26,935	26,039	15.90%
San Francisco	245	265	257	5.00%
Alameda	1,316	1,398	1,499	13.90%
Contra Costa	1,234	1,500	1,400	13.50%
Santa Clara	1,100	1,141	978	-11.00%
San Mateo	425	404	429	0.90%
Marin	131	142	136	4.50%
Solano	408	501	644	58.00%
Sonoma	332	407	438	32.10%
Napa	58	73	75	30.80%
Bay Area Total	5,247	5,832	5,858	11.60%
Santa Cruz	133	142	127	-4.10%
Santa Barbara	241	221	288	19.50%
San Luis Obispo	248	209	221	-10.60%
Monterey	138	175	120	-13.30%
Coast Total	760	747	757	-0.40%
Sacramento	1,463	1,931	2,136	45.90%
San Joaquin	622	755	808	29.90%
Placer	204	284	298	46.00%
Kern	446	639	652	46.00%
Fresno	574	724	852	48.50%
Madera	109	120	149	36.60%
Merced	117	176	176	50.80%
Tulare	297	380	467	57.60%
Yolo	97	94	116	20.00%
El Dorado	139	177	105	-25.00%
Stanislaus	406	596	680	67.60%
Inland Total	4,475	5,876	6,439	43.90%
All California	32,945	39,391	39,093	18.70%

Source: DataQuick Information Systems

For more information call John Karevoll (909)867-9534

Copyright © 1996 DataQuick Information Systems.
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