Fewer California homes entered the formal foreclosure process in the second quarter, bringing foreclosure activity to its lowest level since early 2007. Foreclosure resales as a share of total resales are also down, according to a real estate information service.
DataQuick reports during the second quarter of this year, there were a total of 54,615 Notices of Default (NODs) filings on houses and condos, down 3.6 percent from 56,633 in 2011Q2. The April through June filings were the lowest since 53,943 NODs were recorded in second-quarter 2007.
The Bay Area had a total of 8,572 NOD filings, down13.4 percent from 9,893 a year ago. Santa Clara County's 2012Q2 NOD filings totaled 1,474, down 17.8 percent from 2011Q2, when 1,793 were recorded. Mortgages were least likely to go into default in San Francisco, Marin and San Mateo counties, according to the real estate information service.
Trustees Deeds recorded, or the loss of a home to foreclosure, are also seeing a decline. The state saw a total of 21,851 Trustees Deeds recorded during the April through June period, down 48.5 percent from 42,465 for second-quarter 2011. The foreclosures in 2012Q2 were the lowest for any quarter since the second quarter of 2007, when 17,458 Trustees Deeds were filed.
In Santa Clara County, Trustees Deeds recorded in the second quarter were down 60.4 percent from the same period last year. There were a total of 392 recorded homes lost to foreclosure in Santa Clara County in 2012Q2, compared to 991 in 2011Q2.
"The housing market is stabilizing and it's most evident in the Bay Area, where market activity has been strong. Lack of inventory, however, continues to impede market growth," said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
Foreclosure resales accounted for 27.9 percent of all resale activity in the state in the second quarter, down from 35.6 percent a year ago. The share of foreclosure resales peaked at 57.8 percent in the first quarter of 2009. Foreclosure resales varied from 7.3 percent in San Francisco County to 47.4 percent in Madera County. On the other hand, short sales were an estimated 18 percent of statewide resale activity in 2012Q2, up from 17.4 percent a year earlier, DataQuick reports.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.