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:
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.