California Foreclosures Decline
October 30, 2002
La Jolla, CA.--The number of California homes going into
foreclosure declined again during the third quarter, the result
of strong appreciation and steady demand for homes.
Lending institutions started foreclosure proceedings on
17,925 homeowners during the July-to-September period. That was
down 1.4 percent from 18,179 for the second quarter, and down 4.0
percent from 18,673 for the same three-month period last year,
according to DataQuick Information Systems.
Last quarter's number was the lowest since DataQuick started
monitoring default notices in 1992. The all-time high occurred
during first-quarter 1996 when 44,665 defaults were recorded. A
Notice of Default is the first step of the formal foreclosure
process.
"We're probably close to the bottom right now, we expect
foreclosure rates to edge up a bit between now and spring as
appreciation rates level off. Foreclosure activity is a lagging
indicator and reflects financial distress half a year to a year
prior," said Mike Ela, DataQuick's president.
The median price of a California home was $272,000 last
quarter, up 16.2 percent from $234,000 last year.
Three-fourths of the homeowners in default were able to stop
the foreclosure process by bringing their payments current, or by
selling 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.
A total of 3,257 Trustees Deeds were recorded on homes last
quarter. A Trustees Deed is the final step of the foreclosure
process, meaning that the lending institutions took those
properties back. Last quarter's number was down 17.9 percent from
3,966 during the second quarter and down 25.7 percent from 4,382
a year ago, DataQuick reported.
Tulare, Madera and Fresno counties had the highest relative
foreclosure rates, while Marin, San Francisco and San Mateo
counties had the lowest, DataQuick reported.
In addition to low 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
July to September
|
County |
3Q01 |
3Q02 |
%Chg |
| Los Angeles |
5,693 |
4,883 |
-14.2% |
|
Orange County |
830 |
753 |
-9.4% |
|
San Diego |
755 |
787 |
4.2% |
|
Riverside |
1,544 |
1,330 |
-13.8% |
|
San Bernardino |
1,896 |
1,649 |
-13.0% |
|
Ventura |
325 |
306 |
-5.8% |
|
Southern California Total |
11,043 |
9,707 |
-12.1% |
|
San Francisco |
126 |
109 |
-12.9% |
|
Alameda |
618 |
817 |
32.1% |
|
Contra Costa |
587 |
716 |
21.9% |
|
Santa Clara |
454 |
619 |
36.4% |
|
San Mateo |
174 |
191 |
10.0% |
|
Marin |
86 |
80 |
-6.8% |
|
Solano |
299 |
299 |
0.0% |
|
Sonoma |
136 |
165 |
21.5% |
|
Napa |
38 |
47 |
23.5% |
|
Bay Area Total |
2,517 |
3,043 |
20.9% |
|
Santa Cruz |
63 |
84 |
34.3% |
|
Santa Barbara |
139 |
135 |
-2.9% |
|
San Luis Obispo |
90 |
79 |
-13.2% |
|
Monterey |
83 |
81 |
-2.2% |
|
Coast Total |
375 |
379 |
1.0% |
|
Sacramento |
1,145 |
1,046 |
-8.6% |
|
San Joaquin |
625 |
714 |
14.2% |
|
Placer |
152 |
171 |
12.3% |
|
Kern |
666 |
591 |
-11.3% |
|
Fresno |
861 |
845 |
-1.8% |
|
Madera |
114 |
141 |
23.3% |
|
Merced |
181 |
111 |
-38.8% |
|
Tulare |
496 |
600 |
20.8% |
|
Yolo |
64 |
99 |
56.5% |
|
El Dorado |
81 |
76 |
-5.4% |
|
Stanislaus |
353 |
402 |
13.9% |
|
Inland Total |
4,738 |
4,797 |
1.2% |
|
All California |
18,673 |
17,925 |
-4.0% |
|
|
Source: DataQuick Information Systems
Media Inquiries: John Karevoll (909)867-9534