Residential REO saturation levels in California's inland counties may hinder the speed of recovery in these housing markets.
Santa Barbara, CA (PRWEB) January 27, 2014
RealtyStore.com (http://www.realtystore.com), the largest provider of foreclosure and discount property listings nationwide, compiled January's foreclosure inventory data for the ten most populous California counties and found significant variation in foreclosure saturation levels across the state. Santa Clara County shows the least saturation, while San Bernardino County is the most heavily saturated with REO properties. The data also showed substantially lower foreclosure saturation levels for coastal counties than for counties located farther inland.
Although the volume of new foreclosure filings has trended downward in recent months, a significant amount of existing REO inventory is still present in the ten most populated California counties. RealtyStore compared the total number of households in these counties with their total REO inventory. Results showed coastal counties, including Los Angeles, San Diego, Orange, and Santa Clara counties, contain most of the total households but do not contain a similarly large portion of the total REO inventory. These counties comprise a majority 66% of total households, but only 47% of REO inventory. In contrast, inland counties San Bernardino, Riverside, Sacramento and Contra Costa contain only 24% of households, yet hold 43% of all REO inventory found within the ten counties.
“Recent sales reports show the California housing market is recovering fastest in coastal areas,” said Ryan Fell, Chief Operating Officer of RealtyStore.com. “Analysis of RealtyStore’s foreclosure database supports this view, showing that a far greater concentration of REOs remain in the large inland counties of the state. These REO saturation levels may contribute to a continued drag on the speed of recovery for these inland areas.”
In determining relative saturation levels across these counties, the total number of foreclosures were tabulated and compared to the total number of households per county. The average saturation for all ten counties is 176 REOs per hundred-thousand households. While Santa Clara maintains the lowest saturation with 56 REOs per hundred-thousand households, San Bernardino is more than 5 times as saturated, with 291 REOs.
The coastal counties (Los Angeles, San Diego, Orange, Santa Clara, Alameda) show a combined total saturation level about 50% less that of the inland counties (Riverside, San Bernardino, Sacramento, Contra Costa, Fresno), further highlighting the difference in the current condition of these disparate markets.
The accompanying chart details how all ten counties compare.
RealtyStore (http://www.realtystore.com), a division of Nations Info Corporation, is the leading provider of foreclosure listings and discount property data nationwide. RealtyStore's mission is to empower its customers with the tools, education and analysis required to identify and potentially maximize profits with undervalued real estate. Collected from hundreds of public and private sources, RealtyStore's proprietary database includes over 2 million listings including pre foreclosures, foreclosures, auctions, short sales, lease option or rent to own, and owner financed listings.
REO properties referenced herein have completed the foreclosure process with a recording date on or before the date of this press release. REOs have been repossessed by a bank, lending institution or government sponsored loan guarantor such as Fannie Mae, Freddie Mac, HUD or the VA. REO title holders, inventory counts and prices in any area can vary at any time. REO counts and prices are accessed through RealtyStore’s proprietary database which is derived through hundreds of public and private data providers. Local housing market data and census data is derived from third party and public records offices.