Southern California’s housing market in January posted strong median home price gains as new foreclosure starts plummeted dramatically across the state.
The six-county region's median home price rose 23.5% from the same month a year earlier to $321,000, according to real estate research firm DataQuick. Home sales rose 10.6% to 16,058 over the same period.
The rise in home prices came as foreclosure starts in California took a massive tumble. The foreclosure decline came as new state laws aimed at prohibiting certain aggressive bank repossession practices went into effect.
The real estate website ForeclosureRadar.com reported a 60.5% decline in the number of default notices issued in California in January compared with December. The number of default notices — the first formal step in the state’s foreclosure process — fell 77.7% from December 2011. A total of 4,500 such filings were logged last month, the lowest number since at least September 2006, when the website’s records begin.