DQNews Archived Article

California Foreclosures Ease Down

by Real Estate Analyst John Karevoll
July, 1998

La Jolla, CA.— The number of California properties going into foreclosure continued to decline during the second quarter, the result of fast-paced home sales and rising home values, a real estate information service reported.

Lending institutions started foreclosure proceedings on a total of 30,873 houses and condos in the state during the April-to-June period. That was down 15.9 percent from 36,699 for the first quarter, and down 12.4 percent from 35,247 for last year's second quarter, according to DataQuick Products Division.

Foreclosure activity, which is a lagging indicator, has been declining since early last year. The all-time peak was reached during first-quarter 1996 when 44,665 homes went into foreclosure.

"While we expect foreclosure activity to continue to recede, the decline won't be dramatic. In most of the state home values are still not back to their 1991 peaks. Also, some of the new product lines that the lending industry is marketing have higher risk levels," said Mike Ela, DataQuick president.

The decline in foreclosure activity was strongest in Orange and San Diego counties and in the Bay Area. The decline is weakest in San Bernardino County and in the Central Valley, mostly because those areas have just turned the corner.

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

The negative impact of foreclosure activity on sales prices has declined significantly. While foreclosure homes tugged sales prices down by more than ten percent two years ago, the drag is currently less than five percent, and is isolated to just a few local markets, DataQuick reported.

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

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