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Foreclosed Listing Pace Slowing in the California SFV

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By : John Cutts    99 or more times read
Foreclosed listing pace has been slowing down in the San Fernando Valley, also known as SFV, Valle, 818 or the Valley. According to California records, more than 50 percent of the land area of Los Angeles lies within the Valley.

Based on a report released by the California State Northridge Valley Economic Research Center, the number of default notices filed in January this year fell by 4 percent from the previous month to 972 notices. It also marked a stunning 41-percent drop from the 1,644 notices sent to homeowners in January 2009.

Additionally, completed foreclosures dropped to only 507 units, a significant decrease of 34 percent compared to December 2009 and an 11-percent drop from January 2009.

In part because of the drop in foreclosure activity, home prices in the Valley improved, prompting a lot of buyers to make their purchases before prices rise to high levels again.

The home price median for homes sold in January surged to $398,750, a sharp jump of 13 percent compared to the median in January last year. Another good news for market observers is the increase in home sales year-over-year for the 17th straight month.

According to William Roberts, director of the research center, the declining foreclosed listing pace in the Valley and the increase in prices and sales indicate that the housing market is starting to rise up from its troubles.

Total home sales in January rose to 1,108 units, a 13-percent increase from 982 units sold in January 2009, although a 34-percent drop from the 1,687 units sold in December 2009. Roberts, however, explained the December-January sales decline as normal based on sales data over the years.

Members of the Southland Regional Association of Realtors also affirmed the reported sales and prices increases. Jim Link, chief executive officer of the association, said that the rising trend started in March last year.

Based on Southland data, the January 2010 median sales price of $380,000 marked a 9-percent increase from the January 2009 median of 359,000 but it also marked a 20-percent drop from the December 2009 median price of $400,000. The median price for condos also increased from $190,000 in January 2009 to $215,000 in January this year.

According to Jim Link, if the Valley does not suffer another economic hit, the pace of foreclosed listing will continue its downward trend and will allow the market to finally recover from depressed home prices.

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