43% of sales in California during the second quarter of 2010 were foreclosure-related sales (short sales and real estate owned (REO)), making it the third highest state percentage in the country behind Nevada and Arizona. The California statistic shows a 4% increase from the first quarter, but a 33% decrease in the lender-related home sales from 2009.
Second quarter data for many counties was varied:
- Sacramento — 4,025 foreclosure-related sales; up 8% from the first quarter and down 29% from the second quarter of 2009;
- Placer — 817 foreclosure-related sales; no notable change from the first quarter and down 1% from the second quarter of 2009;
- Yolo — 270 foreclosure-related sales; up 10% from the first quarter and down 31% from the second quarter of 2009; and
- El Dorado — 396 foreclosure-related sales; up 12% from the first quarter and up 16% from the second quarter of 2009.
first tuesday take: Sales of property unrelated to short sale and REO activity have temporarily jumped up due to lender failure to clear delinquent loans from their books. In no way does the data on the ratio of lender related sales to positive equity sales indicate a shrinking trend of MLS or foreclosure inventory.
Notice of default (NOD) recordings have remained extremely high, and will continue to trend upward since mortgage loan delinquencies have steadily increased this year and lenders at some point must clean out the bad loans in their portfolios. All this default and modification activity tells a story of extensive short sales or REO sales still to come — at the lender’s choice and pace. [For more information regarding NODs, see the September 2010 first tuesday article, NODs and NOTS continue to stunt California real estate recovery.]
All said, agents need to mentally gear up for more REOs and short sales, since loan modifications served primarily to delay and extend foreclosure sales.
Re: “Foreclosure Homes Account for 24 Percent of Q2 Residential Sales” by Realty Trac
