DQNews Archived Article

California Foreclosures Down

by Real Estate Analyst John Karevoll
June, 1997

La Jolla, CA.— The number of California homes going into foreclosure declined again in May as prices in the state continued their steady climb, a real estate information service reported.

A total of 11,333 Notices of Default were recorded on residential property in May. That was down 4.8 percent from 11,899 the month before and down 13.6 percent from 13,118 for May a year ago, according to DataQuick Information Systems.

May's year-over-year decline was the sixth in a row and the NOD count was the lowest since 10,914 in September 1995.

"While foreclosures are down, they are not down at a rate proportional to the real estate market's recovery. Homes go into foreclosure today that would not have gone into foreclosure under equal circumstances five years ago. People seem to be more willing to let a home go than they used to be," said Mike Ela, DataQuick's president.

There were clear regional differences in foreclosure trends, DataQuick reported. NOD counts were down 19.7 percent from a year ago in Southern California, while they were up 16 percent in the Central Valley. The Bay Area had a 21.3 percent decline.

Current foreclosure levels are off their peak by a third in Los Angeles County and off by half in San Diego and Orange counties.

DataQuick monitors real estate activity nationwide, and provides information to consumers, lending institutions, title companies and industry analysts.

The likelihood of a homeowner letting a home go into foreclosure increases when home values decline because the home may be worth less than what is owed on it. That trend reverses itself when prices go up. The statewide median for a resale house was $186,000 in May, up 6.3 percent from $174,000 a year ago, DataQuick reported.

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1997 DataQuick Information Systems.
All rights reserved.

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