San Diego Homes

Forclosures hit a 3 year low in San Diego County

A new trend is showing up throughout California, a dropping number of defaults and foreclosures. According to MDA DataQuick, a real-estate research firm based in La Jolla, CA mortgage defaults and foreclosures have dropped to a three year low.

In San Diego county, 5,458 homes went into default in the second quarter of 2010. A 45% drop from 2009, when there were 9,866 second quarter foreclosures. This is the lowest number since 2007. State wide  defaults have dropped for the past five months with a 44% decline over the past four quarters.

“Rising property values are leaving fewer homeowners underwater with their mortgages, which can be a significant factor in letting a property go”, said John Walsh, DataQuick’s president. Motivated sellers and accommodating buyers who have been doing more short sales and public policy, including tax incentives for home-buyers are believed to be some of the reasons for the decline in defaults.

In San Diego County only two areas have seen an increase in defaults: Del Mar and Coronado. Two other areas stayed consistent with the same amount of defaults this year as last year: Rancho Santa Fe and Borrego Springs. Del Mar, Coronado, and Rancho Santa Fe are some of the most priciest neighborhoods in the country with the median price of home over $1 million.

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