DQNews Archived Article

California Foreclosures Decline

by Real Estate Analyst John Karevoll
January, 1999

La Jolla, CA.— The number of California homes that went into foreclosure declined again last year as sales and prices continued to rise, a real estate information service reported.

Formal foreclosure proceedings were started on 122,775 residential properties in 1998, down 13.0 percent from 141,080 for the year before, according to DataQuick Products Division.

Foreclosure activity last year was at its lowest level since 1994 when 122,530 homes went into default:

Year       Number of
           defaults

1992       100,573
1993       121,416
1994       122,530
1995       135,713
1996       162,597
1997       141,180
1998       122,775

Source: DataQuick

"If a homeowner can't make the mortgage payments, it's a lot easier to sell and pay the mortgage off today than it was back when prices were depressed. Even so, current foreclosure levels are higher than expected, probably the result of increased acceptance, and the emergence of so-called 'sub-prime' lending," said Mike Ela, leader of DataQuick Products Division.

Last year's decline in foreclosure activity was strongest in the Bay Area and weakest in the Central Valley. Bay Area home prices recovered earlier and faster than in the rest of the state. Towards the end of last year, the decline became strongest in Southern California.

DataQuick Products Division monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. The numbers count recorded Notices of Default, the first step of the foreclosure process.

County/	1997	1998	Pct.
Region	No NODs	No NODs	Chng.
Los Angeles	41,515	37,729	-9.10%
Orange County	9,262	6,736	-27.30%
San Diego	7,744	6,137	-20.80%
Riverside	13,055	10,394	-20.40%
San Bernardino	14,699	13,136	-10.60%
Ventura	2,142	1,954	-8.80%
So.Calif. Total	88,417	76,086	-13.90%
San Francisco	851	681	-20.00%
Alameda	5,319	4,135	-22.30%
Contra Costa	5,439	4,527	-16.80%
Santa Clara	3,393	2,667	-21.40%
San Mateo	1,450	1,120	-22.80%
Marin	569	380	-33.20%
Solano	2,469	2,155	-12.70%
Sonoma	1,334	935	-29.90%
Napa	372	315	-15.50%
Bay Area Total	21,196	16,914	-20.20%
Santa Cruz	547	423	-22.60%
Santa Barbara	1,054	883	-16.30%
San Luis Obispo	812	662	-18.50%
Monterey	715	650	-9.00%
Coast Total	3,127	2,617	-16.30%
Sacramento	8,656	7,438	-14.10%
San Joaquin	4,115	3,685	-10.50%
Placer	1,102	1,048	-4.90%
Kern	3,271	3,270	-0.10%
Fresno	3,882	4,136	6.50%
Madera	622	700	12.40%
Merced	881	838	-4.80%
Tulare	2,198	2,695	22.60%
Yolo	536	539	0.50%
El Dorado	534	401	-24.90%
Stanislaus	2,642	2,410	-8.80%
Inland Total	28,440	27,158	-4.50%
All California	141,180	122,775	-13.00%
Source: DataQuick

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1999 DataQuick Information Systems.
All rights reserved.

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