Although, new foreclosure filings in California were up quite a bit in the second quarter (June ending quarter) of 2013 compared to the March 2013 quarter, this metric was still considerably lower year-over-year and still at its second-lowest level recorded since 2005.
According to analytics from real estate company DataQuick, default notices in California increased by 39 percent in the June 2013 quarter, to a total of 25,747 notices. This was the second-lowest number of foreclosures filed in the Golden State since the December 2005 quarter. DataQuick’s statistics suggest that the steep rise in foreclosure notices came after an adjustment period in the March quarter, wherein the “Homeowner Bill of Rights” imposed more stringent foreclosure policies in California.
The most notices of default ever filed was 135,431 in the first quarter of 2009, and foreclosures have been going down since then due to the steady increase in home prices. As of the June 2013 quarter, median home prices have climbed to $344,000, an increase of 15 percent quarter-over-quarter and 27 percent year-over-year.
DataQuick President John Walsh talked about this particular variable keeping foreclosure filings low in an official statement. “As home values rise, fewer homeowners owe more on their homes than the homes are worth,” said Walsh.
In terms of individual locations in California, mortgages were not as likely to enter foreclosure in San Francisco, San Mateo and Santa Clara than they were in other counties, while the areas with the highest chances of default were the counties of Fresno, Riverside and Solana.
Additionally, foreclosures were most prevalent in lower-priced neighborhoods; the foreclosure rate was a state-high 4.2 percent in neighborhoods where the median sales price is under $200,000.