Tuesday, January 22, 2008

L.A. Times: State posts record 31,676 foreclosures

Gee, does anybody still really think we're going to be out of this mess by the end of 2009? The number of foreclosures in the golden state in Q4 2007 were more than double the number in the worst quarter of the last downturn, according to this brief January 22 note by Peter Y. Hong.

31,676 homes were lost to foreclosure in Q4, far more than the 15,418 homes lost in Q3 1996. Q4 default notices stood at 81,550, more than twice the 37,994 default notices issued in Q4 2006. It is estimated that 41% of homeowners in default are able to avoid foreclosure by getting their payments current, compared to 71% a year ago.

Price appreciation is definitely a problem for financially distressed homeowners, because there isn't any! The statewide median price was down to $402,000 by the end of 2007, after the March 2007 peak at $484,000. The Southern California peak occurred in the spring and summer of 2007 at $505,000 and ended 2007 at $425,000.

Here are the percentage increases in default notices for Q4 2007, by county:

Los Angeles        +83%
Orange            +116%
Riverside         +119%
San Bernardino    +106%
San Diego          +95% 
Ventura            +89%

In unrelated news, I would love to hear about what goes on at this upcoming Homebuyers Fair.


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