Per ForeclosureRadar, a Web site company that tracks every California foreclosure and provides daily auction updates, has issued its monthly California Foreclosure Report for April 2009. With the rise in REO sales, ForeclosureRadar reported that California's notices of default (NOD), the first step in the foreclosure process, dropped by 18.2 percent from the record level set in March 2009. Last month's filings were down 1.1 percent from April 2008.

It was reported that California  foreclosure notices dropped while foreclosure sales and distressed property purchases by investors rose.  The article also reports that the number of foreclosures sold to third parties increased in  52.3 percent increase over March and 217.9 percent higher than April 2008. Another interesting statistic, the company also noted that nearly 90 percent of the foreclosed loans last month were originated between January 2005 and December 2007.

These stats appear to be consistent with the market in Palm Springs.  We experienced a large number of foreclosure sales at the beginning of 2009.  However, foreclosure inventory has been drying up.  Although we have many buyers looking, in certain price ranges, the inventory is scarce...and in some cases, it appears that prices may actually be starting to rise.

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