Second quarter California foreclosure rates lowest in five years
Posted on Wednesday, August 29, 2012 at 7:37:11 PM
Foreclosures can often drag down the value of homes in any given regional or metro market. Following the recession, states such as California witnessed an increase in the number of distressed properties on the market. However, this negative trend seems to be turning around. According to the latest figures from real estate market research firm DataQuick, the number of California homes entering the formal foreclosure process dropped in the second quarter of 2012 to its lowest level since 2007.
From April to June 2012, there were 54,615 Notices of Default (NOD) recorded – down 2.9 percent from the 56,258 recorded for January through March.
"The foreclosure process has always been the sanitation department of the housing sector. It's where financial distress is processed. The question is whether these lower NOD numbers mean that there's less distress to process, or if we're just seeing distress get processed at a slower pace," said John Walsh, DataQuick president.
The decrease in the number of distressed properties in California will allow potential homebuyers to purchase property with a better investment value. Now, more than in recent years, an individual will have the comfort of knowing their residential financing is going toward a smart property purchase.