Orange County foreclosures: down but far from out
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Orange County’s median home price remains the highest among the six Southern California counties -- at $390,000 in March, according to MDA DataQuick. That was down 23% from the previous year, also the smallest drop among the Southern California counties.
But like the rest of Southern California, previously foreclosed houses are driving the market. Aliso Viejo broker Steven Thomas notes that as of the end of April, the number of foreclosed homes and short sales -- those offered for sale at a price below the mortgage amount -- has dropped substantially. Thomas estimated the total of forecelosures and short sale properties on the market in Orange County in April was down 37% from its peak level in August.
As many commenters and readers of this blog are aware, there’s a widening gap between loan defaults and actual foreclosures, suggesting the system is clogged. Whether lenders are simply overwhelmed or there is a deliberate effort to prevent flooding the market further with repo properties remains a mystery.
Even with foreclosures down, however, the percentage of distressed properties among homes for sale in several Orange County communities remains astonishingly high. Thomas’ data, through April, shows Santa Ana leading the county with a for-sale inventory that is 79% foreclosures or short sales. Foothill Ranch is next with 75% of its inventory distressed. Garden Grove and Anaheim each have about 70% distressed inventory, while in Lake Forest, La Habra, Rancho Santa Margarita and Buena Park, foreclosures and short sales exceed 60% of homes for sale.
The county’s very high end still has relatively few foreclosures. Seal Beach’s distressed inventory is only about 1% of its total, according to Thomas’ stats, and in Laguna Woods, Corona Del Mar, Laguna Beach and Newport Beach foreclosures and short sales still comprise less than 6% of homes for sale.
-- Peter Y. Hong