DQNews Archived Article

California Foreclosures Down Last Year

by Real Estate Analyst John Karevoll
January, 1998

La Jolla, CA.— The number of California homes going into foreclosure declined in 1997 for the first time in at least five years, the result of a growing economy and rising home prices, a real estate information service reported.

Formal foreclosure proceedings were started on 141,180 residential properties in the state in 1997. That was down 13.2 percent from 162,597 for the year before, according to DataQuick Information Systems.

DataQuick started monitoring Notices of Default, the first step of the foreclosure process, in 1992 when 100,573 were recorded. That number went up to 121,416 in 1993, up again to 122,530 in 1994, and up to 135,713 in 1995.

"Foreclosure activity is a lagging indicator and reflects year-old financial distress. Prices are going up now and fewer homeowners will find they owe more on their property than it's worth. We expect foreclosures to decline significantly in 1998," said Mike Ela, DataQuick president.

The decline in foreclosure activity was most noticeable in Orange and San Diego counties (see chart). Foreclosure activity is still on the rise in the Central Valley, although the numbers there are also expected to decline this year.

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

Relative to the number of outstanding home mortgages, San Bernardino County had the most severe foreclosure problem last year, while Marin and San Francisco counties had the smallest problem.

Foreclosure homes generally drag prices down when a significant number of them are on the market. In 1996 they sold at prices 7-9 percent lower than non-foreclosure homes. Last year the gap declined to 3-4 percent, DataQuick reported.

Notices of Default recorded on houses and condos

County/Region	1996	1997	Pct.
	Count	Count	Change
Los Angeles	52,321	41,515	-20.70%
Orange County	13,888	9,262	-33.30%
San Diego	11,621	7,744	-33.40%
Riverside	13,883	13,055	-6.00%
San Bernardino	14,297	14,699	2.80%
Ventura	3,112	2,142	-31.20%
So.Calif. Total	109,122	88,417	-19.00%
San Francisco	1,163	851	-26.80%
Alameda	6,225	5,319	-14.50%
Contra Costa	6,132	5,439	-11.30%
Santa Clara	4,408	3,393	-23.00%
San Mateo	1,773	1,450	-18.20%
Marin	585	569	-2.70%
Solano	2,390	2,469	3.30%
Sonoma	1,624	1,334	-17.90%
Napa	361	372	3.10%
Bay Area Total	24,660	21,196	-14.00%
Santa Cruz	647	547	-15.50%
Santa Barbara	1,167	1,054	-9.60%
San Luis Obispo	890	812	-8.80%
Monterey	692	715	3.20%
Coast Total	3,396	3,127	-7.90%
Sacramento	8,445	8,656	2.50%
San Joaquin	3,416	4,115	20.50%
Placer	1,166	1,102	-5.40%
Kern	2,714	3,271	20.50%
Fresno	3,105	3,882	25.00%
Madera	548	622	13.60%
Merced	714	881	23.30%
Tulare	1,779	2,198	23.60%
Yolo	472	536	13.50%
El Dorado	501	534	6.50%
Stanislaus	2,557	2,642	3.30%
Inland Total	25,418	28,440	11.90%
All California	162,597	141,180	-13.20%

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1998 DataQuick Information Systems.
All rights reserved.

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