Los Angeles Luxury Homes
If you are a property seller the good news just keeps coming. According to a recent article in Forbes, foreclosure rates across the nation are at their lowest point since December of 2006 – before the crash. This is great news as a reduction in foreclosure filings is a sure sign of a recovering real estate market.
According to the article:
A total of 51,842 properties began the foreclosure process in February. That’s the lowest level since December 2005, well before the housing market crashed. Foreclosure starts are an important harbinger of the market, because they catch potential foreclosures at the earliest possible point. February’s foreclosure starts come in 9% lower than January’s level, 27% lower than one year earlier.
That’s certainly great news, but the news isn’t all positive. There are many states across the US where people are still struggling and foreclosure rates have actually increased.
Later in the article, the author mentions several states that have seen an increase in foreclosure activity.
14 states actually saw foreclosure starts increase in February. New Jersey logged the greatest year-over-year jump, with a 126% increase from one year earlier.
Florida, on the other hand, had the highest level of foreclosure activity (default notices, scheduled auctions, and bank repossessions) in the nation, with one of every 372 housing units with a foreclosure filing in February.
Maryland posted the second-highest level of foreclosure activity in the nation, with one in every 557 housing units with a foreclosure filing, a 15% increase year-over-year.
Fortunately, Los Angeles, California is not a real estate market that has seen an increase in foreclosure activity. In fact, we have experienced a significant drop. According to RealtyTrac.com, foreclosures in February 2014 were down 6% from the previous month and 20% lower than the previous year.
A reduction in foreclosure activity can have a far-reaching, positive impact on the Los Angeles real estate market. Less foreclosures on the market means that if you choose to sell home, you won’t be competing with bank-owned properties and can potentially command a higher price for your property due to the lack of inventory. In addition, there will be less abandoned homes scattered throughout LA neighborhoods – a sight that became all too common at the height of the recession. Not only is this aesthetically appealing, it helps to preserve the value of other properties in the neighborhood. Finally, banks that are not carrying a large inventory of foreclosed properties are more likely to lend money and that will help would-be homeowners climb back onto the property ladder.
If you are a buyer, this is not so great news. The lack of inventory has been one of the key forces driving up property values and creating an environment for multiple offers especially in high demand areas such as view homes in the Hollywood Hills, Beverly Hills houses in the flats north of Santa Monica Blvd, Bel-Air Estates, West Hollywood Silver Triangle houses, Los Feliz Estates in Laughlin Park and The Oaks, Sunset Strip and celebrity enclave of the Bird Streets.
Please contact me for exclusive information about off market “pocket” listings for sale in Los Angeles.
To read the complete article, please visit Forbes.com.
Susan Andrews | Estates Director
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Susan Andrews is your ultimate real estate source for Los Angeles, California and surrounding communities.
Graph courtesy of Realtytrac.com.