Foreclosures Increase at Slower Rate
The number of real estate foreclosures in Orange County increased during the first three months of this year but at a slower rate than in previous quarters, indicating that the beleaguered market may be stabilizing.
Lenders took back 1,486 Orange County homes and commercial properties during the first three months of 1994, up 2.8% from 1,446 properties for the previous quarter, according to figures released Monday by TRW Redi Property Data, a real estate data firm in Riverside.
While the number of foreclosures across Southern California is still on the rise, the rate of increase has leveled off from last year’s double-digit increases.
“It’s a trend,” said Nima Nattagh, an analyst with TRW. “I think foreclosures will continue to stabilize for the rest of 1994.
“There is a gradual real estate recovery on the way, in particular in Orange County.”
During the first quarter, lenders took back 14,430 properties in the six Southern California counties, an increase of 4.8% from the previous quarter and of 32% from the first quarter of 1993.
The regional numbers do not yet indicate foreclosures that might result from January’s Northridge earthquake. Typically, about four months elapse from the time that an owner defaults on a mortgage until the lender forecloses on the property.
TRW Redi estimates that about 85% of the latest quarter’s foreclosures were on single-family homes.
Riverside County showed the region’s largest increase in foreclosures: 14.3%.
More Foreclosures, But Rate Slows
Property repossessions are still rising in Southern California, but the rate of increase has stabilized. During the first quarter of this year, lenders foreclosed on 14,430 properties in the Southern California six-county region, an increase of 4.8% from the previous quarter, but well below the double-digit quarterly increases of early 1993.
1993 1994 First Second Third Fourth First County quarter quarter quarter quarter quarter Los Angeles 5,074 5,732 6,575 6,482 6,606 Orange 1,198 1,257 1,474 1,446 1,486 Riverside 1,552 1,735 2,024 2,006 2,292 San Bernardino 1,612 1,769 2,078 2,016 2,170 San Diego 1,093 1,148 1,348 1,371 1,437 Ventura 393 375 417 450 439 Six-county total 10,922 12,016 13,916 13,771 14,430
Source: TRW REDI Property Data
