Report: California’s Foreclosure Inventory Continues to Dry Up
By: Esther Cho 12/18/2012
Foreclosure inventory in California continued its steady decline in November, according to data from ForeclosureRadar.
The total number of preforeclosures, foreclosures scheduled for sale, and REOs fell 7.6 percent from October to November and declined by 31.8 percent from a year ago.
ForeclosureRadar said, “the significant decline in foreclosure inventory over the past year has contributed to what some are calling an ‘inventory crisis’ of total homes for sale.”
The company attributes foreclosure cancellations as part of the reason for the decline.
Cancellations rose 4.7 percent from October and spiked 69.9 percent in the past two months. Compared to last year, cancellations are up 34.7 percent.
ForeclosureRadar believes short sales and successful modifications are likely leading to cancellations rather than statutory time frames or filing errors.
Foreclosure starts and sales were also down in California. Starts fell by 19.9 percent month-over-month, and foreclosure sales decreased by 14.8 percent from October.
The company also tracks foreclosure activity in four other states located west: Arizona, Nevada, Oregon, and Washington.
Most states also experienced monthly declines in foreclosure starts and sales. In Arizona, foreclosure starts fell month-over-month by 23.5 percent, and sales were down by 16.8 percent.
Nevada experienced a 19 percent drop in foreclosure starts and 9.8 percent decline in foreclosure sales.
While Oregon experienced the biggest drop in terms of percentage, a closer look at the numbers explains the dramatic declines. In Oregon, foreclosure starts fell by 45.9 percent, but the actual number of foreclosures went from 85 to 46. In California, foreclosure starts totaled 11,533 in November after dropping from 14,398 the month before.
Foreclosure sales in Oregon decreased by 36.7 percent, but were reduced to 112, a small number compared to sales in California, which totaled 7,494.
In Washington, foreclosure starts fell by 2.9 percent, but sales increased by 81.8 percent to 1,367.
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