Antioch, CA (PRWEB) July 23, 2008
Pre-foreclosure activity indicates continued weakness in housing prices in Antioch, California, but bottom may be near according to foreclosure advisory firm United Investors.
On the surface recent home sales data in Antioch, California suggest rapidly deteriorating market conditions. In June, the California Association of Realtors Trends publication reported a median sales price decline of properties in Antioch of 35.8%. Prospective buyers may wonder when this trend will reverse. Based on analysis by United Investors, leading market indicators suggest continued supply pressure, but there are signs that the bottom may be near.
"The current inventory of unsold properties will undoubtedly increase because of the high number pre-foreclosures," according to Brian Topley, Chief Investment Officer of United Investors. The current inventory of unsold homes in Antioch listed on the official National Association of Realtors website Realtor.com is 1,094 units (single family residences plus condominiums). RealtyTrac data reveal that an additional 1,154 properties are in pre-foreclosure and that 1,144 properties are already bank-owned. Homeowners are facing serious pressure on their finances. Falling home prices combined with tightening lending standards have made refinancing difficult or impossible for some borrowers. This has contributed to high rates of home repossessions by mortgage lenders.
Topley observes that, "The large number of pre-foreclosures indicates housing inventory will continue to increase before it decreases." There are 30,116 housing units in the Antioch, California, based on the US Census Bureau figures for the year 2000 which suggest that approximately 7.6% of the housing supply is in foreclosure or bank-owned.
Recent sales data indicate that the number of sales in Antioch is increasing despite falling prices. Topley notes that, "In a typical real estate cycle, an increase in the number of sales is the first prerequisite to forming a market bottom. Increased sales result in an eventual reduction of supply which is essential for a recovery."
Based on statistics compiled by Dataquick Information Services, 59 homes were sold in Antioch during January 2008 but thereafter increased to 168 homes sold in May. "It is possible," says Topley, "that we are witnessing the early phases of market bottom formation, but we need several additional months of increased sales to confirm that a statistically significant trend is forming rather than an anomaly that could be explained by seasonal or other factors."