California Real Estate:
Number Of Homes Entering Foreclosure Drops
5 Year Low In Foreclosure Entries Is Good News For California Real Estate Market
Data quick is reporting some good news for the California Real Estate market. the number of homes entering foreclosure has dropped precipitously to a 5 year low. The number fell 2.9% from the first quarter and 3.6% from last year.
Now, before we get too enthused about this it is wise to remember that this drop in foreclosure entries could have two meanings: 1) There are fewer owners in trouble; or 2) Distressed properties could simply be proccessing at a slower rate. There is debate on exactly which of these viewpoints is the one actually occurring in the California real estate market at present.
"By Alejandro Lazo, Los Angeles Times. July 24, 2012. – California's foreclosure crisis … The latest evidence of improvement came Monday when real estate firm DataQuick reported that the number of California homes entering the foreclosure process slipped to the lowest level since 2007." …Los Angeles Times
Has The Foreclosure Wave In California Real Estate Bottomed Out?
This is the question everyone's asking these days and, of course, we have experts split just about evenly. Some say buying in this market is crazy and we should expect another downwards wave in values. Others are positive the California real estate market has hit bottom and is now on an upward trend.
Our experience has been that the California real estate market … and usually all real estate markets … resist extremes. The "glass 1/2 full" crowd and the "glass 1/2 empty" crowd are usually proven to be equally incorrect, and the truth always lies somewhere in the "Middle Way". With that in mind, we're cautiously optimistic … but we'll keep our options open.
Remember: picking the exact bottom or top of the California real estate market … or any market for that matter … is a dangerous endeavor. It's our belief that the type of market action we're seeing now could mean we're in an uptrend, but even in an uptrend there is going to be some downwards action. Buying now could very well be a good move. However, if you do so you should be equipped to withstand some possible further downwards movement in values in the short term. The market WILL rise again over the next few years, but in the short run there might still be a slightly lower level it must first fulfill.
California Real Estate.