03 Mar Decline in foreclosures, defaults are positive news for San Diego real estate market
Fewer foreclosures and default notices in San Diego County – including real estate in Carmel Valley, Del Mar, La Jolla, Rancho Santa Fe, Santaluz and Solana Beach – signal the San Diego County real estate market has rebounded and recovery is in full swing.
January foreclosures were down 60% when compared to 2013 figures in San Diego County communities such as Carmel Valley, Del Mar, La Jolla, Rancho Fe, Santaluz and Solana Beach, according to figures by San Diego real estate tracking firm DataQuick.
Lenders foreclosed on 149 properties in January — down from 381 foreclosures reported in January 2013 — and issued 490 default notices, a procedure that begins the 90-day foreclosure process, according to DataQuick figures. January’s foreclosures were up slightly from December, when 136 homes were foreclosed, but the stronger figures indicate a stronger, recovering housing market in San Diego County after years of decline.
Good news for buyers/sellers
Overall, it’s good news for those looking to buy or sell Carmel Valley real estate, Del Mar real estate, La Jolla real estate, Rancho Santa Fe real estate, Santaluz real estate and Solana Beach real estate.
It signals the worst of the housing crisis in the San Diego real estate market is over. Like many areas of the country, San Diego had also been deeply affected by the nation’s mortgage crisis with a record number of foreclosures, mortgage defaults and tanking property values for both residential and commercial property owners.
At the height of the recession, foreclosures and default notices in San Diego county real estate numbered in the thousands. Today, they are well below that.
Another sure sign that the market is recovering? Two Carmel Valley real estate communities recently closed on 16 homes with median prices of between $1.1 million and $2.4 million.
Higher values in real estate in Carmel Valley, Del Mar, La Jolla, Rancho Fe, Santaluz, Solana Beach
Not only are foreclosures down, but property values in San Diego County are up. Real estate values increased 17% from December 2013 compared to December 2012, according to DataQuick’s 2013 Property Intelligence Report. Foreclosures also decreased 55% during that time, DataQuick reported.
Thanks to those surging home values, homeowners who fell behind on their mortgages are now able to sell their homes and avoid mortgage default. That’s in stark contrast to previous years, when homes were “underwater” and property values were substantially lower than selling prices. This caused property values in communities across San Diego County to plummet.
Now, lower foreclosure figures have created a brisk real estate market for San Diego real estate professionals who manage foreclosures, short sales and pre-foreclosure properties. And it has also bumped up real estate sales in general with more sales in San Diego County overall.
Fueled by low inventory, low mortgage rates and high levels of investor purchases, the median home price in San Diego County real estate increased nearly 25% from the previous year, to $305,000 in January 2014, according to the Greater San Diego Association of Realtors. That’s yet another good sign for Carmel Valley real estate, Del Mar real estate, La Jolla real estate, Rancho Santa Fe real estate, Santaluz real estate and Solana Beach real estate.