It appears that the nation’s largest housing market is getting back to normal.  According to data released by DataQuick, Notices of Default , the first step in the foreclosure process, on California houses and condos fell 22.1 percent in the fourth quarter of 2012 compared to the third quarter and were down almost 38 percent from the fourth quarter of 2011.  The number of Default Notices recorded in the quarter was the lowest since the fourth quarter of 2006, near the beginning of the foreclosure crisis.  Quarterly filings in the state peaked in the first quarter of 2009 at 135,431.  

DataQuick attributed the decline in early foreclosure filing to rising home values, an improving economy, and a shift toward short sales which accounted for an estimated 26 percent of statewide resale activity in the fourth quarter.  The median price paid for a home during the quarter was $300,000, up 22.4 percent from a year ago and 32.2 percent off the median’s $227,000 bottom in first-quarter 2009.

“Home values increased through most of 2012, and the rate of increase picked up toward the end of the year. That means fewer and fewer homeowners are underwater, where they owe more than their homes are worth. That in turn means they can sell and pay off the mortgage, or perhaps refinance at today’s low interest rates. This trend alone suggests we’ll see a continued decline in foreclosure rates this year,” said John Walsh, DataQuick president. 

Default filings fell in all home price categories but default rates were higher in California’s lowest priced neighborhoods.  Zip codes where 2012 median sale prices in the fourth quarter were below $200,000 collectively saw 5.5 notices filed for every 1,000 homes while the ratio was 3.5 Default Notices per 1,000 homes in zip codes with $200,000 to $800,000 medians and 1.3 per 1,000 where the median is above $800,000.  The same disparity was evident with foreclosures which declined in frequency as the median price in the zip code increased.

Foreclosure resales accounted for 16.6 percent of all California resale activity last quarter, down from 20.0 percent the prior quarter and 33.6 percent a year ago. It peaked at 57.8 percent in the first quarter of 2009.

Most of the loans going into default are still from the 2005-2007 period with the median origination quarter being the third-quarter 2006. That has been the case for three years, indicating that weak underwriting standards peaked then.

California has been among the hardest hit states in terms of foreclosures, ranking in the top five in RealtyTrac’s accounting of foreclosure activity nationwide for most of the last six years.  While 1.1 million of California’s 8.7 million houses and condos have been involved in a foreclosure proceeding the past five years, 780,000 were actually lost to foreclosure. The other 320,000 were either sold, or the payments brought current. 

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional.   

 I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports, home seller strategies, staging and decorating ideas and more.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. 

Russ Boyd Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage Originator Endorsement 230411.

Sales activity and prices  have improved dramicially in the housing resale market this year, and the media attention given to foreclosures continues to fade.  It’s true, the foreclosure situation has improved steadily over the last year although it’s been slow.
 
Recent news as we year end  indicates that things are indeed looking much better. The number of foreclosures completed in October slipped to 58,000 from 77,000 in September and 70,000 a year ago, according to the latest report from CoreLogic.

 
In addition, CoreLogic reports that fewer properties were in the foreclosure process in October – which bodes well in the months to come. Homes in some stage of foreclosure in October were down 1.3% from September, and accounting for about 3.2% of all mortgages.  On top of that, the total foreclosure inventory has fallen 9% this year.
 For comparison, CoreLogic reports that in the years before the housing market collapse, 2000-2006, an average 21,000 foreclosures were completed in a month. And in total, there have been about 3.9 million foreclosures since September 2008, when the financial crisis started taking its toll.

Foreclosure activity is spread across the country, but five states accounted for nearly half of all completed foreclosures in the last 12 months: California, Florida, Michigan, Texas and Georgia.
 
The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: Florida with 11.1%, New Jersey with 7.7%, New York with 5.3%, Illinois with 5%, and Nevada with 4.8%.
 

2012 has been a turn around year for real estate and is expected to continue even stronger next year. At last, there is light at the end of the tunnel.

Consistent with recent years, Fannie Mae and Freddie Mac each announced their moratorium dates, halting evictions on foreclosure properties during the holiday season so that families can stay in their homes until after the new year. Fannie Mae’s moratorium applies to single-family and 2- to 4-unit properties and runs from Dec. 19, 2012 through Jan. 2, 2013. Freddie Mac’s eviction moratorium starts Dec. 17 and runs through Jan. 2.

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional.   

 I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports, home seller strategies, staging and decorating ideas and more.

 Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. 

Russ Boyd Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage Originator Endorsement 230411.

As we reach mid-year I thought I’d share encouraging news regarding the housing market. 

Please Click Here To Read this Article at Bloomberg.com 

Here is my breakdown of the article and what you ought to know:

1)  Rates are still at historic lows.

 Not only is this having positive impact on the purchase market, it’s also fueling one of the strongest refinance markets in history.  Can you save on your interest rate or monthly payment?  There’s one way to find out.  Just send me an email (russ@brokerruss.com) if you would like to discuss how current rates can benefit you.

2)  Do you have friends or family who are renting?  Please forward this article to them.  The window that is open for first time home buyers today will inevitably close as rates and property values rise.  Today, many first time home buyers can own as affordably as they can rent.  Do your friends a favor and send them this link, Should I Rent or Buy.

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. To see how our technology supports the needs of Buyers and Sellers, click here.

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me (russ@brokerruss.com) for a prompt response.

If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports, home seller strategies, staging and decorating ideas and more.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties.

Russ Boyd Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage Originator Endorsement 230411.

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