11:59am | The number of California homes entering foreclosure fell to a four-year low in the second quarter of the year, according to a report released on Tuesday.
The report credits the foreclosure lull on a more stable housing market as well as policy changes in the mortgage servicing industry. High foreclosures have particularly hurt affordable housing markets around the country, including the Long Beach housing market.
A total of 56,633 Notices of Default were recorded during the April-to-June period, down 17 percent from 68,239 in the previous quarter, and down 19.2 percent from 70,051 in second-quarter 2010, according to San Diego-based DataQuick.
Last quarter’s activity was the lowest for any quarter since 53,493 default notices were recorded in the second quarter of 2007.
“A lot of theories are being floated as to why the numbers are down,” said John Walsh, DataQuick president. “Bank policy changes. Legal challenges. Politics. Holding back temporarily so as not to flood the market. The fact of the matter is that no one really knows, outside of lending and servicing industry insiders. One thing is certain: Homeowner distress spreads fastest when home price declines are steepest. And it now appears likely that, barring some new economic shock, the worst of the price declines are behind us.”
The statewide median sales price was $250,000 in the second quarter, down 7.4 percent from $260,000 a year earlier. In first-quarter 2009, when foreclosure activity peaked, the $227,000 median was down 39.5 percent from $375,000 a year earlier.