California foreclosure sales near $2 Billion in March

DISCOVERY BAY
April 5, 2007 1:39pm

• ‘Unprecedented’ foreclosure activity

• Foreclosure sales now 15 percent of all home sales in California

With the Central Valley leading the way, 5,316 homes were lost to foreclosure sales in March in California, according to figures compiled by Foreclosure Radar, a Discovery Bay-based foreclosure listings and software company.

The homes sold at auction last month represented a 27 percent increase from February and a 264 percent increase in the last six months, the company says. Of the $2 billion worth of properties sold in March, 4,796 went back to the lender after receiving no bids, representing $1.82 billion, it says.

[This is amazing, lenders cannot even sell off their foreclosures!] [ The nationwide housing inventory is worse than it appears. At some point housing prices may implode suddenly when “the panic” takes over and everyone tries to unload their property faster than their neighbors. ]

“Foreclosures sold at auction now account for 15 percent of all home sales in California and continue to rise,” says Sean O’Toole, CEO and founder of Foreclosure Radar. “This isn’t just a story about failing subprime lenders and their customers. At the current pace, foreclosures will be a significant part of the real estate economy. A fact which bears close scrutiny even in areas that are not yet affected.”