October 2008 Foreclosure Stats – Sacramento Real Estate

November 18, 2008

Foreclosures In Sacramento County Decline for 3rd Consecutive Month

The rate of notice of defaults filed has declined 39% since August but, as most professionals in the bank owned home side of the industry in Sacramento homes will tell you, this is a short lived trend.

The legislation passed by the State of California has delayed many homes from coming on the market and in the next few months, we will, in all likelihood, see a dramatic increase in homes to sell.  The result of this could be a further decline in home values across the region.

The Subprime Issue

The homes being foreclosed upon are no longer just those homeowners who got bad loans or who bought more home than they could afford.  The poor economy, lead by housing, caused the unemployment rate to rise and with those resulting job losses people who wouldn’t otherwise be affected by the housing downturn are losing there homes.  I heard a quote on the news that 25% of homeowners in the U.S. are underwater.  This means they owe more on their homes than they are worth.  That, from a historical perspective, is simply astounding.

More Than a Quarter Million Homes

Over 250,000 U. S. homeowners received notices of default in October.  Filings are up 25% nationwide over last year and this trend is expected to continue unless there is some unification between the government and mortgage companies on mortgage modifications.  While the banks are now working more with sellers to modify loans, there is still more that needs to be done to “stem the tide”, so to speak, of foreclosed homes.

Sacramento County Foreclosures

The graph illustrates the cities that had 60 or more notices of default filed against them.  All other cities in the region were under 60 notices filed.

I was asked by a potential buyer yesterday what the future holds for this market, how soon will it end and what did I see on the other side of this mess.  My answer was “who knows”.  The experts have all been wrong up to this point.  Gas was supposed to be $5 a gallon this summer, it never got to that and it was supposed to stop going down at $2.20 and that hasn’t happened either.

As the values continue to trend down and the transactions continue the current pace, the inventory levels will certainly begin to stabalize.  I’m am getting the impression that housing will lead us out of this mess as it lead us into it.  It will just take time.

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Related must read?  See Forth Hoyt’s article at SacramentoRealEstateTalk.com.  It’s a good one.

Forclosures in Sacramento Homes DECLINE 29.5% in September

October 29, 2008

New Law Takes Effect; It’s Doomed!

The headline looks good but, unfortunately, it’s destined to fail just as it did in other states.  You’d think the state government would get a clue from other states on helping out homeowners if that is their aim but, alas, that isn’t to be.  For a recent article on this, see my other site, Sacramento Real Estate Views.com.

Foreclosures in California

While foreclosures declined statewide in September, California is still in one of the top spots for foreclosures at #3 falling one spot since last month at #2 with two states, Nevada and Florida, leading the way.  On one hand this isn’t good news but on another, it’s great news for investors and first time home buyers of Sacramento real estate.

The recent law enacted by the state has ensured that buyers will profit in the long term by purchasing homes in Sacramento.  With the glut of inventory coming on the market in the next couple months, values will most likely decline further making the Sacramento region one of the most affordable locations in the state if it isn’t already.

That’s one in every 189 homes in California this month receiving a foreclosure filing, down from one in every 130 homes receiving a filing in August.

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August Foreclosure Stats for Sacramento County

September 30, 2008

Foreclosures in California

The foreclosure statistics for August are staggering.  California is #2 in the country for all foreclosure related activity in August.  The rate of foreclosure activity is one in every 130 homes in California received either a notice of default or was foreclosed upon in August; over 40% increase over the month of July and over 75% increase over August of 2007 bringing the year to date total over 625,000 with under half of those sold.  Wow.

Other states coming in with high numbers of foreclosure related activity are #1 Nevada, #3 Arizona and #4 Florida.

Foreclosures in Sacramento County

The graph below illustrates where the foreclosures are happening in Sacramento real estate.  The Sacramento region is taking an enormous hit with foreclosures and there doesn’t seem to be a slowing down as yet.  I’ve heard and read from other sources that foreclosures are receding but this doesn’t seem to be the case when looking at the hard numbers as indicated below.

Sacramento is number one with over 3500 foreclosures while every other city in the county comes in a distant second.  This makes sense as the population is much higher than surrounding commuinties.

None of this is pretty but there is a positive side to everything.  Please contact me with any questions you have.

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