Industry News

More real estate foreclosures expected in California

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A nine-year drop in California foreclosure activity appeared to level off during the second quarter, the result of a maturing real estate cycle and cooler appreciation rates, a real estate information service reported today. Lending institutions sent default notices to 12,408 California homeowners during the April-to-June period, down 14.4 percent from 14,501 for the first three months of the year, and down 0.9 percent from 12,520 for last year's second quarter, according to DataQuick Information Systems. Default notices (NoDs) peaked in 1996's first quarter at 59,897. The low was last year's third quarter with 12,145. "We have to remember that a certain level of foreclosure activity is normal in any market. Current foreclosure rates are unnaturally low and we expect them to go up during the rest of this year as appreciation rates ease back," said Marshall Prentice, DataQuick president. The statewide median home price rose 16.7 percent during the second quarter to $433,000 from $...