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Dennis Hartley's Blog

By Dennis Hartley | Agent in 90277

Big Decline in Foreclosures

Rising home prices and increased sales of homes continued in 2013 just as the number of new foreclosures fell sharply throughout California.  The number of new default notices, the first step in the foreclosure process, fell 78% from January 2012 to January 2013.  This is the lowest number of default notices since before the housing crisis began.  Foreclosed homes made up just 15% of the Southern California resale market last month, down dramatically from a high of 57% at the peak of the crisis.

The cause of the drop in foreclosure notices is thought to be due to a package of new laws known as the Homeowner Bill of Rights.  The laws protecting California homeowners went into effect on January 1st.  Among other things, the laws prevent banks from “dual tracking” which previously allowed lenders to seize a home while the owner was trying to negotiate a short sale or loan modification. 

Fewer foreclosures will further tighten the housing market and lead to more gains in home prices but rising prices also will lift more underwater homeowners out of a negative equity position, helping them sell their homes, which could loosen up supply and moderate the recent price increases.

Inventory of homes for sale in Redondo Beach remains lower than I can remember, even during the hot market of 2003 to 2006.  Last time I checked there were only twenty five homes for sale in all of North Redondo compared to a usual inventory of about seventy five homes on the market, so the inventory level is down substantially.  This is a great time to be a seller!  Call me for experienced advice regarding marketing your home

 

 
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