There is a big wave coming to Southern California and it will not be found in the ocean. Foreclosures have hit their highest level in two years and should begin to affect real estate inventory soon, at least for a short period of time.
According to new data released this month by RealtyTrac, one of the largest real estate data firms, the number of homes repossessed by banks in California in December reached the highest levels since December 2012 – nearly triple.
Californiaâ€™s Homeowner Bill of Rights, which is about a year old, has prolonged the foreclosure process for banks, who must now abide by the many protections provided homeowners under the bill, and now that the banks have had time to adjust to the new rules they are going after repossessions.
Notices of default, the first indication that a home is about to enter the foreclosure process, are currently at the same level they have been for the last six months, but will soon rise if all indications are correct.
Real estate agents and homebuyers will soon start to see more foreclosures and short sales popping up, just in time for the Spring selling season. But keep in mind that these sales are not the bargains they once were â€“ even though banks want these properties off their books, they want to sell the homes for value as well. (click here for more information on the changing value of short sales).