California Foreclosure Activity Drops- Foreclosed Inventory Represent a Disappearing DEAL

Foreclosure Change By State (January 2011)

Foreclosure activity is slowing. According to foreclosure-tracker RealtyTrac, the number of foreclosure filings dropped 17 percent on an annual basis last month. Monthly filings ticked higher 1 percent after a combined 23 percent decrease through November and December 2010.

The phrase “foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions.

January marked the third straight month of sub-300,000 filings after 20 straight months above it.

As compared to January 2010, six of the nation’s 10 most foreclosure-heavy states posted an annual foreclosure filing reduction. The remaining four showed modest worsening.

It’s noteworthy that states like where we live California  posted declines of 7 percent and 54 percent, respectively, and that Nevada posted a relatively-low 3 percent gain. These  states have been at the leading edge of foreclosure activity since 2007. Their subsequent recoveries, therefore, may foreshadow a better housing market ahead.

Or, this may be lasting effects from the “robo-signer” controversy.

So Where Do We Go Next

Regardless, home buyers in California continue to clamor for distressed homes and it remains a first time home buyers market.

According to the National Association of REALTORS®, properties in various stages of the foreclosure and short sale process are selling at discounts in the range of 10-15 percent so it’s no wonder they now account for 36 percent of all home resales. Buying a foreclosure can be a great “deal”.  They can be more trouble and cost than they’re worth.

Therefore, If you’re in the market for a foreclosed home , be sure to speak with a licensed real estate agent. The process of buying a distressed home is different from buying a non-distressed home. An experienced professional can help make sure you negotiate your best possible price. In the Bay Area and Central Valley I work with some of the best agents around. I would be happy to recommend some one based upon your needs. Send me an email below with some details of what you’re looking for and I would be happy to put you in touch with a qualified Realtor.  We also offer free pre approvals and specialize in first time home buyers purchasing foreclosed properties.

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