I am taking this right from their article as I love it:
"A steadily improving economy has helped. And the vast number of underwater borrowers — those who owe more on their homes than those properties are worth — have continued to pay their mortgages instead of walking away, leading to fewer home repossessions."
Buying is tough out there due to this lack of foreclosures. The few auctions that are happening at the court house steps are seeing major competition between the investors. 30% of homes are going to all cash buyers, whether at auction or once it hits the MLS. That's a lot of competition for regular buyers and all those FHA buyers trying to buy for the first time or buying after a SS or Foreclosure of their own 3 years ago.
California has several items in place to make foreclosure less likely now than just a few years ago.
Most banks are realizing that SS and loan mods are a much better choice than a foreclosure.
Many years ago we were all waiting for the avalanche of shadow inventory...it never came.
So, foreclosures are low, SS are working, loan mods are happening. Home owners are gaining equity.
Prices are going up,
and I can't wait for those sellers that when their equity tips to the positive side,
they call me to sell their home!