The highest rate of foreclosure activity among the metropolitan areas in the country has been recorded in Inland Empire, where with the increase in foreclosure activities, home values are also increasing. In the last month, home prices increased slightly compared to April.
Two South California based real estate data companies, DataQuick and RealtyTrac analyzed and concluded that these increased numbers and rates reveal that this region is recovering from its gloomy state gradually but it will take some more time before the market stabilizes.
John Walsh, President at DataQuick Information Services stated, “The market is being slowly nursed back to health by low-interest rates, a modestly improved economy and, we suspect, a widening sense that the housing sector is at or near bottom.”
Based in San Diego, DataQuick records the ups and downs in the real estate market in this region, and according to their records the average price of condos and houses in Southern California was $295,000 last month which is 5.4% higher than the average price recorded a year ago. This May, the average home value in San Bernardino County was $158,000, which is 5.7% higher than May 2011. Similarly, the price at Riverside County reached $205,000 with a 4.1% spike. However, in Los Angeles County, there was a drop of 1.6% as average home prices climbed down to $315,000.
RealtyTrac reported that this May, there was one foreclosed property for every 179 housing units in Riverside and San Bernardino counties. Compared to May 2011, the foreclosure rate in Inland Empire was 3% less in May 2012, but compared to April 2012, there was a 20% increase.
In Los Angeles County, the foreclosure rate dropped by 24% from May 2011 and remained steady in both April and May 2012. All across the nation, the foreclosure rate experienced a 9% spike this May from the preceding month, but remained well below the rate seen in May 2011.
According to the Irvine based company, lenders and banks have decreased their tendency of foreclosing properties, and this has been proven when California experienced a 27% drop in the bank repossession rate this May.
Chief Executive Officer at RealtyTrac, Brandon Moore said, “Based on the rise in pre-foreclosure sales we’ve seen so far this year, a higher percentage of these new foreclosure starts will likely end up as short sales or auction sales to third parties rather than bank repossessions going forward. While pre-foreclosure sales have less of a negative impact on home values than bank-owned sales, they still represent a discounted sale where a distressed homeowner is losing his or her home.”
Photo by Cooldesign.
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