San Diego Foreclosure Real Estate

Rising home prices continue to fuel the Southern California housing market. In May, foreclosures and default notices continued on a declining trend in San Diego county as home appreciation rates have helped to restore a significant amount of equity in homes and have pulled homes from the brink of foreclosure.

According to DataQuick, a real estate information tracker, banks foreclosed on only 141 properties in San Diego County in May. This was down from 162 in April and from 175 one year ago in May 2013. These numbers are also well below the Great Recession peak of foreclosures in July 2008, during which 2,004 properties were repossessed.

Default notices, which is the beginning stage in the foreclosure process, also took a plunge from 462 issued in April to 419 in May. This time last year saw lenders file 642 default notices. The peak of default notice issuance occurred in March 2009 when 3,832 notices were sent out by lenders.

Analysts are pleased to report that the first five months of 2014 have yielded the lowest amount of foreclosures in eight years and the lowest amount of default notices in nine years.

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“This is a continuation of the mop up stage of the foreclosure crisis,” Andrew LePage, analyst for DataQuick, said to U-T San Diego. “That’s not to say a single month or quarter couldn’t shoot up a bit, because we’re at low enough numbers now where just a handful of lenders changing their policies on processing distressed loans cold move those numbers up significantly.”

San Diego Housing Market Conditions Looking Up

Although many analysts fear that the rapid increase of home prices will create another housing bubble crisis, many mortgage borrowers have benefited from the large appreciation in home value over the last year. Other factors have contributed to improving conditions for home owners as well, including local economic growth and a falling unemployment rate.

Despite a recent slow period in home appreciation, many home owners have been given the opportunity to sell their home or to refinance as measures to avoid foreclosure now that their homes have recovered and even gained some value.

“They’re going to do everything possible to keep the home and avoid foreclosure if they have reason to believe prices are rising,” LePage said. “It wasn’t so long ago people weren’t sure whether there was hope or not.”

Hope is exactly what market analysts like LePage have in the current conditions in San Diego. According to Altos Research, a California-based real estate analytics company, prices have been on a steady rise over the last three months and have made significant, but not out-of-reach gains. As of June 13, the median single-family home value in San Diego is $646,754. With an buyers commanding San Diego homes, it is likely that this value will continue on its upward trend throughout the summer.

San Diego is a wonderful place to call home and we can help you to find the perfect one. Please contact our team of luxury property experts today.

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(all data current as of 11/24/2017)

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