According to recent data, foreclosure rates in the Los Angeles-Long Beach-Glendale area have fallen when compared to last year, but have remained relatively flat when comparing month-to-month data. When looking at national data, the foreclosure rate within the region is also much lower. Although this may reflect low chances of getting a good deal on a luxury home, it does bring good news when reflecting on the overall health of the region’s economy along with property value.
Examining Foreclosure Rates
In June of this year, the rate of Los Angeles-Long Beach-Glendale area foreclosures among outstanding mortgage loans was 0.55 percent. This figure reflects a 0.7 percent decrease when compared to June of 2014, though it is only slightly lower than the 0.56 percent figure that was reported in May of this year. Nonetheless, the rate has been trending downward throughout the year, though the change has been slight. In January, the rate was 0.62 percent. It went up slightly to 0.63 percent in February before falling to 0.61 percent in March and then 0.58 percent in April. Each of these rates is significantly lower than the national foreclosure rate, which was 1.28 percent in June of this year.
Exploring Mortgage Delinquency Rates
In addition to experiencing a drop in foreclosure rates, the Los Angeles-Long Beach-Glendale area has also experienced a drop in mortgage delinquency rates. The latest data shows that 1.99 percent of mortgage loans were 90 days or more delinquent in June of this year. In June of last year, this figure was at 2.58 percent. The rates are also down when compared to the previous month, as mortgage delinquency rates were at 2.04 percent in May.
Foreclosures and Home Values
For luxury home owners, a decline in foreclosure rates is a sign that the local economy is moving in the right direction. It also helps give home values a boost, as fewer foreclosures indicates that more people are ready to buy. Furthermore, with fewer foreclosures on the market, buyers have less low-priced options available to them.
Of course, if you were hoping to purchase a luxury home at a bargain price, there are far fewer options available in Southern California than there were just a few short years ago. This does not mean that they do not exist, however, as a solid opportunity to purchase a luxury home that is in foreclosure does happen occasionally.
If you are interested in purchasing a luxury home that is in foreclosure, the first step will be to identify which stage of the foreclosure process the house is in, as the steps necessary for purchasing the home will vary depending upon the unique situation of the home. You should also keep in mind that negotiations may take a bit longer than they do with a traditional home purchase, as the transaction may require multiple levels of approval.
When purchasing a foreclosure, it is also important to note that the bank cannot verify the condition of the home. Therefore, you should complete a professional home inspection before making a purchase.
If you are interested in purchasing a luxury home and need more information on where to start, contact our team of luxury real estate specialists today. They can give you options and let you know what Southern California has in store for you.