In California, notices of default, notices of trustee sale, and foreclosure sales declined in the last quarter of the year to their lowest levels since Jan. 2007, according to Property Radar. The company’s analysts point to the holidays likely being a contributing factor.
Banks are less likely to foreclose on homeowners during the holiday season causing a seasonal decline in foreclosure levels. Additionally, the ongoing recovery in the California housing market has lifted tens of thousands of California homeowners out of a negative equity position, reducing the likelihood of default.
California’s notices of default slumped by 32 percent over the month of November and fell 54 percent over the previous 12 months. Notices of trustee sale declined 17.8 percent for the month and dropped 61.9 percent in the past 12 months. And, foreclosure sales fell by 17.7 percent month-to-month and sank 66.5 percent annually.
REO inventory remained relatively unchanged, while pre-foreclosure inventory retreated 9.7 percent and scheduled for trustee sale inventory fell 5.7 percent.
Property Radar says REOs have been trending mostly sideways in California since July, oscillating around the 1,700 per month level. The company explained, REOs plunged in the month of June as banks digested new federal foreclosure rules published by the Office of the Comptroller of the Currency in a guidance letter. REOs dropped 14.4 percent between October and November but were up 41.9 percent since June. Still, California’s REO inventory remains 63 percent below Nov. 2012 keeping the total foreclosure inventory at or near pre-housing crisis levels.
Leading the way in California real estate for more than 100 years, the California Association Of Realtors (www.car.org) is one of the largest state trade organizations in the United States with 165,000 members. Your local association of realtors, The Lodi Association of Realtors is 92 years old and is one of the oldest and largest associations in our area. We take our duty to the public serious and providing you with up-to-date housing information is our privilege.
Sheri Aguilar is the president of the Lodi Association of Realtors and can be reached at Sheri@YourLocalAOR.com.