2 p.m., Dec. 10
San Diego Foreclosure Woes Continue
The latest foreclosure figures covering the month of June were recently made available by the default tracking site ForeclosureRadar.com, and suggest a continued downward trend in the number of “distressed” properties set to hit the market in coming months.
In California, one of the states hit hardest by the real estate meltdown, new foreclosure starts were off by slightly less than one percent compared to last month, but the number of properties actually sold at auction is down 13.4 percent as compared to May and almost 50 percent as compared to a year ago.
San Diego County, however, is not yet seeing the same declines as the rest of the state. New foreclosures here are up 7.5 percent over May and 6.25 percent over June 2011. Banks, however, are still slow to foreclose, with the average property going to sale last month having been in default for over 300 days.
“California Governor Jerry Brown signed into law the Homeowner Bill of Rights, an anti-foreclosure package which naively thinks that slowing foreclosures will benefit homeowners and the economy by leaving those owners stuck in their prison of debt,” says Sean O'Toole, founder and CEO of ForeclosureRadar, and a noted proponent of real estate investors. “Fortunately this bill was watered down significantly from its original form,” he continued.
One side effect of the reduced number of foreclosed properties hitting the market has been a shortage of inventory to coincide with buyers returning to the market after years of fence-sitting. DataQuick, which tracks the resale of all previously owned homes, reports an overall year-over-year increase in San Diego values for May of just over 3 percent, factoring in 3,757 homes sold in that month.