16 Jul Foreclosures in San Diego real estate market fall
Foreclosures and default notices for real estate in San Diego County continued to fall in May, as home prices rose enough to allow homeowners in trouble to sell.
In May, banks foreclosed on 141 properties in the county, according to figures released by real estate tracking firm DataQuick. May’s numbers were down from 162 in April and 175 in May 2013. Default notices – which banks file to begin the foreclosure process – dropped to 419 in May, down from 462 in April. They are down substantially from just a year ago, when 642 default notices were recorded in May 2013, but well below the area’s peak of 3,832 recorded in March 2009.
Overall, the foreclosure rate for real estate in San Diego is down substantially, topping out from the high of 2,004 homes repossessed at the height of the recession in May 2008, and have been on the decline for months. Lower foreclosure rates are typically an indicator of an area’s economic strength.
In San Diego’s case, the real estate market has largely rebounded. Earlier this year, San Diego real estate was #1 in the nation for most improved performance year-over-year, though appreciation has fallen in recent months as the market battles more housing inventory, a cooling investor market and more constraints on affordability.
All told, the foreclosure and default notice rate in San Diego are at eight and nine-year lows, respectively. Thanks to higher appreciation rates and a stronger labor market, borrowers in financial trouble have refinanced or sold their homes at a profit to avoid foreclosures. Homes for sale in San Diego appreciated more than 20 percent in 2013, though those figures have cooled in recent months as the market has bounced back to pre-recession levels.