New data show California now has the 17th highest foreclosure rate in the country. In fact, the state has ranked below the top ten for six-straight months.
“…a dramatic improvement from during the worst of the housing crisis. California was consistently among the top five really in terms of foreclosure rate.”
Daren Blomquist is with the foreclosure listing service RealtyTrac which released its July data today.
Blomquist says just over 13,000 California properties received foreclosure filings last month.
“It was down 12% from the previous month and it was down 69% from a year ago…and was actually slightly below the national average.”
Blomquist says the state’s foreclosure activity slowed after California’s Homeowner Bill of Rights went into effect in January. The law set new regulations for the mortgage industry.
In Stockton there were 360 properties with foreclosure filings in July…down 76% from a year ago. In Sacramento, about 1,000 properties got a foreclosure filing and that was down 72 year over year.
Blomquist says the numbers are good news for people who already own a home.
“If you’re a homeowner you don’t have as many of those foreclosures in your neighborhood that are selling and that’s what has been a big contributor to the loss in home value over the last seven years. On the buyer’s side this has actually turned into a challenging market.”
That’s because, Blomquist explains, home prices are rising dramatically in California…by 15% to 30% in some markets. And he says there are fewer homes “for sale” to choose from.
After leading the U.S. in home repossessions for several months, Nevada's foreclosure rate is down to 7th in the nation, dropping about 44% year-over-year.
One in every 730 homes in Nevada saw some sort of foreclosure filing in July.
In Reno, foreclosures fell dramatically: 33% from the previous month and a whopping 70% from a year ago.
“The market is improving there but it wasn’t just due to organic market improvement in Reno. It was due to another law in Nevada, and they’ve had a few of these, that changed the foreclosure process.”
Blomquist says Nevada passed its own version of the “Homeowner Bill of Rights” which California enacted earlier this year. The laws set new regulations for the mortgage industry.
The six states with a higher rate are Florida, Maryland, Ohio, Connecticut, New Mexico and Illinois.