Because a large part of our business is helping people that are in foreclosure (and investors that purchase pre-foreclosure properties) we have been tracking the amount of default notices that are recorded in Shasta County. Since last year we have noticed a large increase in foreclosure notices. As an example, for the month of June 2008 we have seen an 88% increase in foreclosure filings compared to June of last year.
88 % increase in Notice of Default Filings compared to June 2007!
There were a total of 86 notices filed in June ’07 and 162 notices filed in ‘08
The amount of foreclosure filings for the week of July 18, 2008 through July 25 is 43, the week before was 42. At this rate, July is on track to meet or beat June’s number of 162 notice of default filings.
Whether it’s through pre-foreclosure sale, Bank Real Estate Owned (REO) or bankruptcy, most of the homes that enter foreclosure end up on the market. With our current inventory at 1,930 homes and an average of 167 homes selling over the last three months, inventory should continue to climb.
We feel these are important stats because; as the foreclosure starts go down there will be less distress sales on the market and will provide an opportunity for prices to stabilize.