Sales of foreclosed homes and sales of other distressed properties continued to fall in Southern California last month -- a big reason why the region’s median home price rose in August.
The flow of foreclosures onto California’s market also slowed dramatically in August, meaning that there will be no second wave of foreclosed properties hitting the market anytime in the near future.
Notices of default statewide fell 23.6% from July and were down 49.1% from August last year, according to data from ForeclosureRadar.com. The notice of default is the first formal step in the foreclosure process.
"We continue to see reports that there will be a wave of foreclosure sales after the election or at the start of the year,” said Sean O'Toole, chief executive at ForeclosureRadar. “The lack of foreclosure starts this month puts a nail in the coffin of this theory. There will be no wave of foreclosures for at least five months. The good news for investors and first-time buyers is that foreclosure sales have at least remained flat or slightly up, continuing to provide some opportunities in the meantime."