7-Year Low on Defaults and Foreclosures in San Diego

According to a DataQuick report on October 21st, San Diego Real Estate’s foreclosure and default rate faltered to a seven-year low in September.

In the month of September the foreclosures final number read 146, while in September 2012 the number was at 497. This is a 70.6 percent year-over-year decline. However, the last time the number was this low in foreclosures dates back to August 2006 posting 134 according to the San Diego Union-Times.

Defaults in September totaled at 466, while in September 2012 registered 1,050 for San Diego Real Estate. This was a 55.6 percent year-over-year decline according to the San Diego Union-Times.

When the country’s real estate crash began in 2007, records were set in San Diego Real Estate with foreclosures increasing to 2,004 in July 2008 and defaults rose to 3,832 in March 2009 according to the article.

DataQuick reported defaults for monthly mortgage in the 400-550 range and foreclosures in the 20-80 range when the market was in its standard fluctuation in 2000-2001.

However University of San Diego real estate economist Norm Miller voiced from his examination to the San Diego Union-Times that foreclosures will be back to normal in the next year.

“Keep in mind before we play violins for them, that a lot who are stuck have first and second mortgages,” Miller said to the San Diego Union-Times. “They pulled all the equity out of their home and are living in homes with no money (invested). … It’s really the lender who’s getting stuck. They’re other only ones with real money in the deal.

According to the San Diego Union-Times, Miller also stated that the leading indicator for the health of the lending environment is the number to pay attention to is the default rate. He feels foreclosures will rise if the default number increases more.

Foreclosures could sink lower than 100 actions per month if the existing situations with an economic recovery and the stabilization of house markets remain slow, according to Miller’s predictions in the San Diego Union-Times.

By Linda Moore

 

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