DQNews Archived Article

California Foreclosures Edge Up

by Real Estate Analyst John Karevoll
July, 1997

La Jolla, CA.— The number of California homeowners going into foreclosure edged up in June for the first time this year, indicating that not all regional real estate markets have been swept up in the state's overall recovery, a real estate information service reported.

A total of 12,026 Notices of Default were recorded on houses and condos in June. That was up 6.2 percent from 11,321 for May and up 2.5 percent from 11,733 for June last year, according to DataQuick Information Systems.

The June uptick reversed a downward trend that started last year. The number of homes going into foreclosure peaked in early 1996 when more than 15 thousand default notices were send out monthly.

"The trend is clear. In areas where home values have turned the corner and are going up, foreclosure activity is in decline. In areas where home values haven't started going up yet, foreclosure activity is flat or still on the rise," said Mike Ela, DataQuick president.

So far this year Southern California has seen a 17.6 percent drop in foreclosure starts, with San Diego and Orange counties both down by over 30 percent.

Counties in the Central Valley have seen a year-to-date increase of 18.8 percent, DataQuick reported.

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

The likelihood of a homeowner going 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.

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1997 DataQuick Information Systems.
All rights reserved.

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