Further proof that we are building a base. Today, Realtytrac.com reported a -34.42% change over last months California foreclosure rate. Even though the rate is down from last month, it is still 64.49% higher than December 2005. With interest rates holding fairly low, we’ll have to see if things continue to settle down.
I certainly have noticed an increase in Orange County’s buyer activity this month. With conditions ripe, we’ll just have to see if this springs buying activity is going to be as strong as some of the experts are predicting.
http://www.ocregister.com/ocregister/money/housing/article_1545869.php
Shows that NOD’s for OC rose 88% for 2006, foreclosures were up 18.6% in December compared to Nobember and foreclosures for 2006 were 647 more than quadruple than 2005.
Good point. There can be no doubt that the real estate universe in Orange County certainly has changed. Different rules. I do want to point out a few things however.
1. That article makes strong reference to the notice of default rate. This is a lot different from the foreclosure rate. NOD’s are typically much higher. It goes to the fact that people are strung out from over spending. I am sure that the rise in short term interest rates has a lot to do with this.
2. Even though the article states that foreclosures are up 290 percent from a year ago, lets not forget that, foreclosures were at an all time low and nearly non- existent. This article does state “Default and foreclosure monthly totals are still below historical averages”
3. Even though 121 homes were foreclosed on in December lets not forget that this market can absorb a lot more than that. Gary Watts continually references the fact that we are always 50,000 units short.
4. At this point its all about affordability. Some people just got carried away with overspending and risky loans. I believe the local economy is still doing well and with growth our market will continue to do well and home values should hold well maybe even grow.
I am not arguing the data, just what it means. I’ve written over 25 offers on foreclosures in the past 4 weeks. Based on the banks poor responses, I would say that they are not suffering to badly. They are discounting a little but they are not discounting a lot. When their inventory starts to build I am sure you will see better discounts, but for now, properties appear to be moving pretty good. For more information visit my foreclosure page at http://www.jdanielrealty.com/foreclosures.php