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May 05, 2010

FEWER DEFAULTS IN SAN DIEGO
There were fewer defaults in the San Diego area, while foreclosures were up a bit during the first three months of 2010 compared to the same period of last year. This may possibly foretell a lessening of the housing predicament.

During the first three months of 2010 there were over six thousand default notices, which is lower than the more than ten thousand of the preceding year. There were just over two thousand two hundred notices of default for March of 2010, which is lower than the slightly more than three thousand eight hundred for March a year ago.

This movement may indicate a move of distressed properties from lower cost homes due to loan resolution via negotiation with lenders as well as economic distress and loss of jobs hitting homeowners with higher incomes. There are indications that things may be looking up for the lower priced markets as difficulties spread to the higher priced areas.

There is a California-wide leaning that revealed that areas where homes sell for five hundred thousand dollars or higher had 1 ½ % more defaults than areas where homes sell for less than five hundred thousand dollars had 19% fewer defaults from year to year. However, the rate of default for the more expensive homes was 4 ½ notices of default per one thousand homes, while the rate for homes in the less expensive areas was 10 ½ notices of default per one thousand homes.

These trends may suggest a decrease in defaults and foreclosures and an increase in short sales and mortgage modifications.