California Foreclosure Activity at a Low
February 17, 2005
La Jolla, CA.--Foreclosure activity in California dropped to
its lowest level in more than thirteen years in 2004, the result of
robust home sales and strong appreciation rates, a real estate
information service reported.
Lending institutions sent default notices to 56,125 California
homeowners last year. That was down 32.9 percent from 83,600 in
2003, according to DataQuick Information Systems.
Last year's default count was the lowest DataQuick has in its
statistics, which go back to 1992. Default activity was strongest
in 1996 when 217,410 homeowners found themselves in the foreclosure
process.
"There's always a going to certain level of financial distress
out there. People lose jobs, get divorced or have costly medical
emergencies even in the best of times. Right now, though, because
of increasing home values, virtually everyone can sell or refinance
if they're really in trouble," said Marshall Prentice, DataQuick
president.
"We expect foreclosures to go up this year. It's likely that
appreciation rates will come down somewhat. And also, a lot of last
year's mortgages were higher-risk loans where default rates will be
higher," he said.
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. The current numbers count defaults somewhat differently
than previously, although the trends are the same.
While all counties in California saw a decrease in foreclosure
activity, the decline was strongest in Los Angeles and San
Bernardino counties.
Mortgage loans are least likely to go into default in San Luis
Obispo, Orange and Marin counties. The likelihood is highest in
Central Valley counties.
Only about ten percent of the homeowners in the default
process actually lose their homes to foreclosure. Most are able to
stop the foreclosure process by bringing their mortgage payments
current, or by selling their home and paying the mortgage off.
While foreclosure properties tugged property values down by
almost ten percent in some areas eight years ago, the effect on
today's market is negligible, DataQuick reported.
Notices of Default
recorded on residential property
|
County |
2003 |
2004 |
%Chg |
| Los Angeles |
25,806 |
13,297 |
-48.5% |
|
Orange |
3,909 |
2,754 |
-29.5% |
|
San Diego |
4,364 |
3,263 |
-25.2% |
|
Riverside |
7,145 |
5,089 |
-28.8% |
|
San Bernardino |
8,843 |
5,677 |
-35.8% |
|
Ventura |
1,543 |
883 |
-42.8% |
|
SoCal Total |
51,610 |
31,048 |
-39.8% |
|
San Francisco |
538 |
427 |
-20.6% |
|
Alameda |
3,102 |
2,429 |
-21.7% |
|
Contra Costa |
2,758 |
2,183 |
-20.8% |
|
Santa Clara |
3,127 |
2,520 |
-19.4% |
|
San Mateo |
930 |
684 |
-26.5% |
|
Marin |
277 |
248 |
-10.5% |
|
Solano |
1,219 |
1,019 |
-16.4% |
|
Sonoma |
645 |
495 |
-23.3% |
|
Napa |
128 |
101 |
-21.1% |
|
Bay Area Total |
12,724 |
10,106 |
-20.6% |
|
Santa Cruz |
311 |
260 |
-16.4% |
|
Santa Barbara |
527 |
320 |
-39.3% |
|
San Luis Obispo |
321 |
205 |
-36.1% |
|
Monterey |
449 |
384 |
-14.5% |
|
Coast Total |
1,608 |
1,169 |
-27.3% |
|
Sacramento |
3,589 |
2,880 |
-19.8% |
|
San Joaquin |
2,936 |
2,213 |
-24.6% |
|
Placer |
640 |
526 |
-17.8% |
|
Kern |
2,295 |
1,733 |
-24.5% |
|
Fresno |
2,660 |
1,929 |
-27.5% |
|
Madera |
396 |
317 |
-19.9% |
|
Merced |
677 |
502 |
-25.8% |
|
Tulare |
2,266 |
1,477 |
-34.8% |
|
Yolo |
278 |
233 |
-16.2% |
|
El Dorado |
358 |
280 |
-21.8% |
|
Stanislaus |
1,563 |
1,267 |
-18.9% |
|
Central Valley Total |
17,658 |
13,461 |
-23.8% |
|
Statewide |
83,600 |
56,125 |
-32.9% |
|
|
Source: DataQuick Information Systems
Media Inquiries: John Karevoll (909)867-9534