After experiencing decline in the past several months, California foreclosure incidence is on a surge once again. This is a clear proof that the housing market has not fully recovered yet. Despite the increase in average home sales, the housing industry is still in turmoil as proven by the high foreclosure rate.
Foreclosure rate in Southwest County rose in December. In North San Diego County, sales in repossessed properties likewise increased leaving home sales in high-end neighbourhoods sluggish.
The housing crisis has pulled down mean home price in the region by as much as 30 percent. In the areas of Encinitas and Del Mar, however, not many foreclosures have been witnessed. This led to a stable average home price and a subsequent drop in home sales by 42 percent from December 2007 to December 2008.
Meanwhile, in the communities of Temecula, Escondido, and Vista, among others, where the housing crisis is prevalent, home price is down to 50 percent as compared to home price two years back. The drop in prices evidently caused a big increase in home sales. In Vista and Escondido particularly, average home sales in December 2008 increased by as much as seven times from sales in 2007. The same growth in foreclosure property sales was experienced in Temecula.
Mean home price in Southwest Riverside County also dropped by 30 percent from November 2007 to November 2008, at approximately $260,000.
Mortgage defaults dropped from September to November but nevertheless peaked in December. Default is the first stage in foreclosure.
Although buyers have gone back to purchasing homes, the adverse effects of the housing crisis are undeniable. Foreclosure cases in some counties doubled from November to December 2008, offsetting home sales. In Southwest Riverside County alone, 1,300 properties were foreclosed. Another 1,100 homes in North San Diego experienced the same fate.
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