DECLINE IN CA FORECLOSURE ACTIVITY MAY RESULT IN HIGHER HOME PRICES
The number of California homes going into foreclosure dropped again during the fourth quarter of 2010 to its lowest level in more than three years, the result of shifting market conditions as well as evolving lender and mortgage servicer policies.
Some of this decline is due to less household financial distress and shifts in lender and servicer foreclosure policies. The level of default activity would certainly be higher if it weren't for alternative strategies such as short sales and lenders lengthening grace periods on loans.
Institutions that hold these loans in their portfolios will do whatever it takes to lessen their losses, including waiting to put properties on the market.
Most of the loans that went into default last quarter were originated during the 2005-2007 period, the median origination quarter for defaulted loans remained third-quarter 2006. That has been the case for over a year, indicating that weak underwriting standards peaked then.
BUYERS: This could mean that price declines may be ending with more sales and less distress sales coming on the market. When you are buying know that financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying is up. All indicators that may lead to a decline in inventory and higher prices.
SELLERS: Home sales were up 15.3% from 31,403 in November, and down 13.4% from 41,837 for December 2009. Good news may be just around the corner for you as to selling times and sale prices.
DQNews, Pamela Horton 01/31/2011
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COASTAL AREA SALES DATA AND DISTRESS SALES STATISTICS FOR 2011 FROM 01/01/11:
Balboa Island, Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,135, w/Bank Conditions = 534
In Escrow Listings = 707, w/Bank Conditions = 408
Sold from 01/01/10 = 4,160, w/Bank Conditions = 1,355
*SOCALMLS 01/31/2011
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR DECEMBER 2010 COMPARED TO DECEMBER 2011:
City - # Sold - Median Sale Price - % of price change:
Balboa Island - 92662 - 3 - $3,090,000 - 87.8%
Capo Beach - 92624 - 9- $620,000 - 11.7%
Cororna del Mar - 92625 - 12 - $1,703,000 - 37.1%
Costa Mesa - 92626 - 18 - $602,000 - minus 4.8%
Costa Mesa - 92627 - 30 - $473,000 - minus 15%
Dana Point - 92629 - 19 - $663,000 - minus 16.1%
Laguna Beach - 92651 - 31 - $1,125,000 - minus 17%
Laguna Niguel - 92677 -40 - $668,000 - minus 4.6%
Newport Beach - 92660 - 29 - $1,132,000 - minus 2.9%
Newport Beach - 92661- 5 - $1,750,000 - minus 18.1%
Newport Beach - 92663 - 13 - $1,300,000 - 38.3%
Newport Coast - 92657 - 11 - $1,880,000 - minus 4.6%
San Clemente - 92672 - 23 - $627,000 - minus 22.7%
San Clemente - 92673 - 22 - $663,000 - minus 3.3%
*DQNews/LATimes, 01/31/2011
The number of California homes going into foreclosure dropped again during the fourth quarter of 2010 to its lowest level in more than three years, the result of shifting market conditions as well as evolving lender and mortgage servicer policies.
Some of this decline is due to less household financial distress and shifts in lender and servicer foreclosure policies. The level of default activity would certainly be higher if it weren't for alternative strategies such as short sales and lenders lengthening grace periods on loans.
Institutions that hold these loans in their portfolios will do whatever it takes to lessen their losses, including waiting to put properties on the market.
Most of the loans that went into default last quarter were originated during the 2005-2007 period, the median origination quarter for defaulted loans remained third-quarter 2006. That has been the case for over a year, indicating that weak underwriting standards peaked then.
BUYERS: This could mean that price declines may be ending with more sales and less distress sales coming on the market. When you are buying know that financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying is up. All indicators that may lead to a decline in inventory and higher prices.
SELLERS: Home sales were up 15.3% from 31,403 in November, and down 13.4% from 41,837 for December 2009. Good news may be just around the corner for you as to selling times and sale prices.
DQNews, Pamela Horton 01/31/2011
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COASTAL AREA SALES DATA AND DISTRESS SALES STATISTICS FOR 2011 FROM 01/01/11:
Balboa Island, Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,135, w/Bank Conditions = 534
In Escrow Listings = 707, w/Bank Conditions = 408
Sold from 01/01/10 = 4,160, w/Bank Conditions = 1,355
*SOCALMLS 01/31/2011
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR DECEMBER 2010 COMPARED TO DECEMBER 2011:
City - # Sold - Median Sale Price - % of price change:
Balboa Island - 92662 - 3 - $3,090,000 - 87.8%
Capo Beach - 92624 - 9- $620,000 - 11.7%
Cororna del Mar - 92625 - 12 - $1,703,000 - 37.1%
Costa Mesa - 92626 - 18 - $602,000 - minus 4.8%
Costa Mesa - 92627 - 30 - $473,000 - minus 15%
Dana Point - 92629 - 19 - $663,000 - minus 16.1%
Laguna Beach - 92651 - 31 - $1,125,000 - minus 17%
Laguna Niguel - 92677 -40 - $668,000 - minus 4.6%
Newport Beach - 92660 - 29 - $1,132,000 - minus 2.9%
Newport Beach - 92661- 5 - $1,750,000 - minus 18.1%
Newport Beach - 92663 - 13 - $1,300,000 - 38.3%
Newport Coast - 92657 - 11 - $1,880,000 - minus 4.6%
San Clemente - 92672 - 23 - $627,000 - minus 22.7%
San Clemente - 92673 - 22 - $663,000 - minus 3.3%
*DQNews/LATimes, 01/31/2011
