Real Estate News

It may seem that the news from California real estate could not be worse. So when encouraging news happens, we get the most out of it. For example, in the second quarter of this year Notices of Default (NOD) decreased by almost 14 percent over the first quarter and 44 percent from the second quarter of 2009.

According to MDA DataQuick’s total second quarter was the lowest in almost three years. “Sellers motivated and capable lenders played a role in what the default number down, especially with short sales,” said John Walsh, DataQuick president. “If prices continue to rise, fewer homeowners are under water, which is a significant factor in selling a house,” he said.

The tendency of the sub-market defaults, the areas / zip codes with median equal to or less than $ 300,000, continues to decline. Homes in neighborhoods of greater value, the median $ 800,000 or more, have been reduced and represent a larger percentage of total violations statewide. Fewer cheap homes are receiving NOD is now the largest number of homes receiving notices value, while relatively stable, is now a large percentage of the total NOD.

Areas with medium 11 will receive nearly $ 300,000 default notices per 1,000 households. In comparison, the areas with median $ 800,000 less than 3 NOD recorded per 1,000 households. However, 6.1 percent of all default notices were filed in 15 of the highest prices in the coastal counties of homes with mortgages over $ 800,000.

While defaults have fallen across the state, the number of Directors Deeds (executions) has increased by 11 percent. During the second quarter, a total of 47,669 houses and condominiums were lost to foreclosure. While the number is high, it is still below the peak of nearly 80,000 entries in the third quarter of 2008.

In foreclosure resales during the second quarter amounted to almost 36 percent of all resale activity in the state. Although it is difficult to determine with precision the foreclosed properties are being bought by investors or other lenders rather than government entities. In California, the market is definitely improving.