But, RealtyTrac analyst Daren Blomquist says the drops in foreclosures may have more to do with a new law called the "Homeowner Bill of Rights" than a real improvement in the markets.
"When we see that in other states, there is sometimes an extended period where foreclosure activity drops dramatically," says Blomquist. "But then that's often followed by a rebound in the number as the lenders adjust to the new way of doing things."
Blomquist says so many bad loans have already been dealt with in California that the state could buck the national trend, but it's hard to tell.
California is now 16th on the list for most foreclosures. It has been in the top ten since the housing crisis began.