California Foreclosures Stay Low
April 30, 2004
La Jolla, CA.--Foreclosure activity in California stayed flat
at a low level during the first quarter of this year, the result of
robust home sales and strong appreciation rates, a real estate
information service reported.
Lending institutions started foreclosure proceedings on 15,031
homeowners during the January-to-March period. That was up 0.2
percent from 14,955 for the prior three months, and down 25.0
percent from 20,035 for last year's first quarter, according to
DataQuick Information Systems.
Fourth-quarter 2003 activity was the lowest in DataQuick's
statistics, while last quarter was the second lowest. DataQuick
began collecting default data in 1992.
"There's always going to be some default activity and we're
probably as low as we can go right now. With appreciation rates as
high as they are now, homeowners who get into financial trouble can
sell, pay off what they owe, and walk away with some money. Default
rates will start increasing again when appreciation levels off,"
said Marshall Prentice, DataQuick president.
The median price paid for a California home was $342,000
during first-quarter 2004, up 20.4 percent from $284,000 a year
ago.
Foreclosure activity decreased significantly in San Luis
Obispo, Los Angeles and Tulare (see table). At the other end of the
scale, Stanislaus, El Dorado and Yolo saw slightly increasing
foreclosure rates.
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.
More than eighty-five percent of the homeowners who found
themselves 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 of all
distressed homeowners were able to do that.
While foreclosure properties tugged property values down
almost ten percent in some areas eight years ago, the effect on
today's market is negligible, DataQuick reported.
In addition to the decline in foreclosures, 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.
Tulare, Madera and Kern counties had the highest loan-by-loan
foreclosure risk, while Orange, San Diego and San Luis Obispo
counties had the lowest, DataQuick reported.
Notices of Default
recorded on residential property
|
County |
1Q2003 |
1Q2004 |
%Chg |
| Los Angeles |
5,135 |
3,115 |
-39.3% |
|
Orange County |
902 |
610 |
-32.4% |
|
San Diego |
1,000 |
680 |
-32.1% |
|
Riverside |
1,596 |
1,184 |
-25.8% |
|
San Bernardino |
1,828 |
1,204 |
-34.1% |
|
Ventura |
291 |
192 |
-34.1% |
|
Total |
10,752 |
6,984 |
-35.0% |
|
San Francisco |
148 |
142 |
-4.1% |
|
Alameda |
876 |
828 |
-5.5% |
|
Contra Costa |
894 |
714 |
-20.1% |
|
Santa Clara |
880 |
866 |
-1.6% |
|
San Mateo |
236 |
188 |
-20.5% |
|
Marin |
86 |
78 |
-9.1% |
|
Solano |
350 |
317 |
-9.3% |
|
Sonoma |
203 |
158 |
-22.0% |
|
Napa |
33 |
29 |
-13.3% |
|
Bay Area Total |
3,705 |
3,320 |
-10.4% |
|
Santa Cruz |
93 |
68 |
-26.9% |
|
Santa Barbara |
151 |
106 |
-29.7% |
|
San Luis Obispo |
131 |
62 |
-52.7% |
|
Monterey |
135 |
133 |
-1.4% |
|
Coast Total |
510 |
369 |
-27.6% |
|
Sacramento |
1,024 |
895 |
-12.6% |
|
San Joaquin |
844 |
670 |
-20.6% |
|
Placer |
204 |
155 |
-24.1% |
|
Kern |
695 |
596 |
-14.1% |
|
Fresno |
777 |
675 |
-13.1% |
|
Madera |
125 |
120 |
-4.3% |
|
Merced |
202 |
154 |
-23.9% |
|
Tulare |
680 |
464 |
-31.8% |
|
Yolo |
75 |
83 |
11.1% |
|
El Dorado |
83 |
100 |
21.1% |
|
Stanislaus |
361 |
446 |
23.5% |
|
Inland Total |
5,069 |
4,358 |
-14.0% |
|
All California |
20,035 |
15,031 |
-25.0% |
|
|
Source: DataQuick Information Systems
Media Inquiries: John Karevoll (909)867-9534