Indicators of Strengthening San Diego Real Estate Market
- The Bonez
If the number of foreclosures last month is an indicator of market strength there is some good news to be
reported. Last month the North County defaults were down by 18.5% from October, but still above the number
of a year ago. The November notices of default will indicate if the trend is continuing, as it did in October.
Foreclosure Radar (a real estate market analysis firm) reports that 10,469 homeowners were able to avoid
foreclosure throughout California which is a 19.8 percent improvement over last month's statistics. Homeowners
can avoid having their homes sold at auction and foreclosure by bringing their payments up to date, selling the
home or getting a loan changed with the lender.
This report may mean that the federal government's loan modification plan is having a positive impact. With the
November numbers a trend may be able to be established. The research company Marketpointe Realty Advisors has
suggested that the increase in cancellations of property foreclosures is a very good thing! They also reported
that now about one third of all foreclosures have been avoided since the government Loan Modification program
began to step in, in the later part of 2008.
Both of these reports may be the early signs of a slow but steady Real Estate market recovery in
San Diego County and foretell the national recovery. The spring of 2010 may show a much healthier market
with many fewer foreclosures, short sales, and the steadying of home values. We will watch and report the
indicators as they are revealed.