San Diego Real Estate Insulated from New Foreclosure Surge
While some parts of the country continue to be hard hit by the foreclosure crisis San Diego real estate appears to have gained immunity.
Some states have seen incredibly high double digit surges in foreclosures in the last few months. This is now being compounded even further as September figures reveal a 25% leap in re-defaults on homes with loan modifications, and some types of loans continue to experience a 40% re-default rate within 12 months of loan modification, dragging out the foreclosure crisis even longer.
However, San Diego real estate seems to be protected from these negative trends and is actually heading in the opposite direction.
U-T San Diego reporting on the latest data reveals Notices of Default in San Diego County are now at an incredible 6 year low, dropping 9% from September to October 2012 and down 50% since last year.
This is even more significant since mortgage defaults typically rise at this time of year. Some want the public to believe this is a result of Obama policies finally kicking in, while others contend that San Diego has simply worked through the majority of troubled loans and potential foreclosures.
Still there were almost 1,000 new Notices of Default or initial foreclosure filings in San Diego County last month and the high number of short sales on underwater homes are certainly helping to stem the flow of foreclosures. However, short sales could certainly potentially dry up as we enter 2013 as incentives for homeowners complete them vanish.
For now the bottom line is that there are still plenty of opportunities for San Diego real estate investors in what is undoubtedly one of the healthiest housing markets in the world right now, providing a great place to buy and invest for growth and security.