Industry News

California real estate defaults rise

Slowing price appreciation partly to blame

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel, a real estate information publisher and investment advisory firm, reported today that mortgage defaults are rising in California, due in part to a slowdown in price appreciation. Alexis McGee, president, reported 10,247 notices of default for third-quarter 2005 in major Southern California counties, while in eight of the nine San Francisco Bay Area counties the total was 3,150. "Defaults in California's southland are moving off the historic baseline because the hot markets there are finally cooling down," McGee said in a statement. She added that defaults were still low in the San Francisco Bay Area because the price correction there had just barely begun. "We saw a little jump in Sacramento County to 1,051 defaults in the third quarter, up from 919 in the second quarter, and that market is definitely slowing, especially at the high end." She went on to say that when prices cycle over the top, weakness first appears in the most expensive segment o...