San Diego Homes

San Diego Homes: 2010 Foreclosures

In San Diego, 25% of the home sales in the 3rd quarter were foreclosed homes. These homes sold for approximately 32% less than non-distressed homes. According to RealtyTrac Chief Executive Officer James J. Saccacio. “Demand for foreclosures also dipped in the third quarter, but those who did purchase a short sale or REO during the quarter were able to get the highest average foreclosure discount we’ve seen since the fourth quarter of 2005.

According to the San Diego County Assessor’s office, foreclosures are at their lowest level since November 2007. Many banks stopped the foreclosure process after revelations that bank employees had signed off on foreclosures without adequate review of the necessary documentation. We won’t see the widespread effect of the scandal until the fourth quarter of this year.

Notices of Default (NODs), the first step in the foreclosure process, also fell 22% on a year-over-year basis. This may be an indication of where the market is going in 2011. This may mean that the market is running out of bad mortgages.

What this may also means is that the great buys are coming to an end. San Diego home values rose 5% over last year. The San Diego home market is in better shape than it was 1 year ago.

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