Monday, August 12, 2013
California's housing market is coming back into balance as mortgage delinquencies fall.
SAN DIEGO The number of mortgage defaults in California has fallen so much that the housing market is once again being considered in balance.
The nation's Mortgage Bankers Association said mortgage delinquencies have hit a five-year low.
The group's latest survey finds only about 6 percent of loans on one- to four- unit homes were entering or in the foreclosure process.
That's the lowest level since 2008.
San Diego State University real estate lecturer Dana Kuhn said that trend is also reflected in San Diego. The rebounding economy and rising prices get a lot of the credit.
"People who literally haven't been able to make payments, they've held on this long and gotten jobs and now they can," said Kuhn. "Along with that, increased confidence creates hope that if they can just get through the next few months, then they'll be okay. And, of course, higher prices mean fewer homes are upside down."
Mortgage Bankers said the foreclosure rate in California has come down so much that it is close to pre-recession levels.