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DQNews Archived Article


California Foreclosures Flat

May 31, 2002

La Jolla, CA.--Foreclosure activity edged up in the Bay Area and remained flat in the rest of the state during the first four months of this year.

Lending institutions started foreclosure proceedings on 29,730 homeowners during the January-to-April period. That was up 4.9 percent from 28,350 for the same period last year, according to DataQuick Information Systems.

Last year's count was the lowest for that period that DataQuick has in it's statistics, which go back to 1992. Foreclosure activity peaked in 1996 when 59,183 homes were drawn into the default process. The numbers count Notices of Default, the first step of the formal foreclosure process.

"Current foreclosure activity is probably about as low as it can go. When homes go up in value, foreclosure rates go down because financially distressed homeowners can sell, pay off what they owe on the home, and walk away with some money. The Bay Area had flat appreciation for about a year until this spring, but home values are going up there again, like they are in the rest of the state," said Mike Ela, DataQuick's president.

The median price paid for a California home last month was $259,000, up 17.2 percent from $221,000 April 2002.

Bay Area defaults totaled 4,660 so far this year, up 37.6 percent from 3,386 for the same four months last year. Bay Area foreclosure rates are still relatively low, roughly half the rate in the rest of the state because homes in low-cost markets go into default more often than homes in expensive markets.

Three-fourths of the homeowners in default were able to stop the foreclosure process by bringing their mortgage payments current, or by selling their home and paying the mortgage off. In the mid 1990s only half the distressed homeowners were able to do that.

DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

In addition to flat foreclosure activity, there is unremarkable activity among other market stress indicators including loan-to-value ratios, seller financing and other unconventional financing usage, shifts in market mix, turnover rates and non-owner occupancy rates, DataQuick reported.


Notices of Default
recorded on residential property
January to April

County 2001 2002 %Chg
Los Angeles 8,414 8,713 3.6%
Orange County 1,249 1,414 13.2%
San Diego 1,269 1,405 10.7%
Riverside 2,266 2,302 1.6%
San Bernardino 3,242 2,776 -14.4%
Ventura 497 569 14.5%
Southern California Total 16,936 17,178 1.4%
San Francisco 166 199 19.5%
Alameda 883 1,124 27.4%
Contra Costa 828 1,060 28.1%
Santa Clara 621 1,058 70.5%
San Mateo 230 356 54.6%
Marin 68 115 68.6%
Solano 361 431 19.5%
Sonoma 163 263 61.1%
Napa 66 53 -20.0%
Bay Area Total 3,386 4,660 37.6%
Santa Cruz 82 111 34.8%
Santa Barbara 225 215 -4.5%
San Luis Obispo 117 148 26.5%
Monterey 142 164 15.6%
Coast Total 566 638 12.6%
Sacramento 1,752 1,476 -15.8%
San Joaquin 805 906 12.5%
Placer 228 300 32.0%
Kern 1,143 1,068 -6.6%
Fresno 1,399 1,302 -6.9%
Madera 245 210 -14.1%
Merced 233 226 -3.2%
Tulare 870 890 2.2%
Yolo 146 124 -15.1%
El Dorado 96 142 47.7%
Stanislaus 544 611 12.3%
Inland Total 7,461 7,254 -2.8%
 
All California 28,350 29,730 4.9%

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534


Copyright © 2002 DataQuick Information Systems.
All rights reserved.


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