San Diego Home Losses Hit New High

By
Managing Real Estate Broker with San Diego Previews Real Estate CA BRE# 01101958

by Roberta Murphy

San diego skyline

According to the latest release from Dataquick, a record number of default notices have been sent to California homeowners during this last quarter, setting a new ten-year record. Why? Dataquick reports that "flat appreciation, slow sales, and post teaser-rate mortgage resets" have contributed to these financial casualties.

The San Diego Union Tribune   reports that San Diego County endured 1,182 foreclosures from January through March, 2007--or almost eight times the 153 logged for the same period last year. The prior record was set in the third quarter of 1996, when the housing market was in a deep slump. Under any circumstances, these are not good numbers but they also fail to reflect the very different housing and economic pictiure that has occurred in San Diego during the last eleven years. We now have thousands more jobs and around 182,000 more homes, which would change the percentages and statistics reported.

The good news? San Diego is faring much better than other parts of the country (Detroit, Cleveland) and state (Sacramento area, Riverside, Imperial and San Bernardino Counties) when it comes to foreclosures -and we're not shovelling snow or wading in water during April, either! So how does San Diego stack up in Southern California? The San Diego Union Tribune offers the following:

Foreclosure Chart

 

 

 

 

 

 

 

DataQuick analyst John Karevoll says that San Diego's foreclosure spike may be short lived, which would be welcome news to our local economy. He feels this is so because the defaults are mainly affecting recent homebuyers, who make up a small percentage of the homeowning population. At the same time, San Diego is on the edge of the bloody envelope. It experienced both the rise and decline earlier than anyone else-and may likely be one of the first to recover.

Website: San Diego Real Estate
Other Blog: Luxury Home Digest

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Rainmaker
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Joan Snodgrass
Midamerica Referral Network - Kimberling City, MO
Interesting, Roberta.  Hopefully it is on the path to recovery.
Apr 17, 2007 08:03 AM #1
Rainmaker
33,635
Bob Wilson
Access San Diego - San Diego, CA

Having started in 1990 and been through the last down market in San Diego, I believe John is being overly optimistic. Each foreclosure has an impact on the surrounding comps, so it's not just the interest only financing that is impacting the market.

When 8 of the 12 biggest builders have pulled stakes, that also tells you that this is not a short term problem.  

Apr 17, 2007 08:44 AM #2
Rainmaker
197,711
Roberta Murphy
San Diego Previews Real Estate - Carlsbad, CA
Carlsbad Real Estate and Homes

Joan: Whether San Diego is on the road to recovery or something worse is unknown at this time. With the exception of certain glutted pockets (Downtown, South Bay, condo conversions), the inventory seems to be absorbable--at the right price.

Bob: Foreclosure and short sale comps are already affecting prices in San Diego. It is a painful pill for many sellers....

As for builder's pulling stakes, I would see that as a distant bullish sign. Inventory will lessen over time, for sure. 

Apr 17, 2007 12:53 PM #3
Rainmaker
73,001
San Diego real estate blog San Diego real estate agent
brokerforyou.com CA Lic#00706331 - San Diego, CA

Good to see a 'tell-it-like-it-is' post'! As a listing agent you are far better off with the 'real' facts right up front.

I'd suggest to look at my post:

San Diego Condo Values Plunge in Many Neighborhoods

the url is: http://www.brokerforyou.com/brokerforyou/index.php?paged=4 

 

Oct 21, 2007 09:58 AM #4
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Rainmaker
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Roberta Murphy

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