Tuesday, April 15, 2008

Foreclosures jump 57 percent in last 12 months

Foreclosures haven’t yet peaked despite a dramatic 57 percent increase in filings and a 129 percent increase in bank repossessions between March 2007 and March 2008, according to a report issued Tuesday by RealtyTrac. Nevada, California and Florida, respectively, experienced the highest level of foreclosure activity for March 2008, the report said.

For my Readers:
  • One of every 538 single-family households in the U.S. experienced some form of foreclosure filing during March, the report said. RealtyTrac officials predict record foreclosure activity in the third or fourth quarter of 2008 as subprime ARMs adjust upward.
  • In most states, foreclosure occurs in three phases: a Notice of Default is filed after payments are missed, a notice of scheduled auction is filed if steps aren’t taken to remedy the default, and an REO filing occurs when the lender repossesses the property after failure to sell it at auction.
  • Nevada, California and Florida experienced the highest foreclosure rates. In California, one in every 204 homes was subject to a foreclosure filing in March for a total of 64,711 properties. March filings were up almost 21 percent from February and approximately 106 percent from a year ago March.

Median price of SoCal homes plunged 24 pct to 4-year low

Southern California home prices fell 24 percent in March, almost a four-year low, according to DataQuick Information Services. March’s six-county regional median price was $385,000, down sharply from March 2007, when the median was at $505,000. The last time the regional median price was that low was in April 2004, when it was $380,000.

For my Readers:
  • Foreclosures are driving price declines. Riverside/San Bernardino was most affected. Fifty-six percent of homes sold in Riverside County in March were foreclosures, which caused the area’s median price to drop 27 percent to $306,250. San Bernardino’s median price fell 28 percent to $265,000.

  • Orange County continues to be the most expensive market in the region at $506,000, which was 20 percent below last year’s median price for March.