California housing market leads the way to recovery in the wake of subprime mortgage loan crisis

California housing market

The California housing market is on the mend as decreased foreclosures and increased market activity help to stabilize local real estate.

By Vicki Johnson

In the days leading up to the great recession, California led the country in subprime mortgage loans — reckless transactions that played a major role in the housing market bust, both here and throughout the rest of the country.  However, a new RealtyTrac data report published in the San Francisco Chronicle shows the California housing market now leading the way to real estate recovery through a combination of reduced defaults, increased demand in move-up markets and lively activity on the part of investors.

After being buried in the aftermath of countless foreclosures following the implosion of the housing bubble, California has finally succeeded in stabilizing the housing market. The latest RealtyTrac data shows U.S. foreclosure filings at their lowest in nearly five years – thanks in large part to a dramatic reduction in defaults throughout California. Initial statewide default filings fell to their lowest point in 69 months, signifying a decrease of 45% compared to this time last year. Meanwhile, home sales in the state’s most populous regions jumped to highest rates since 2006 as of August 2012. Across the nation, housing market trends are mirroring California’s advances” defaults fell by 34% in Arizona, 22% in Michigan and 21% in Georgia, while overall U.S. home values rose by 1.2% relative to last year’s figures.

In addition to reduced defaults, California has also enjoyed a brisk uptake in market activity from investors and move-up buyers, with the bulk of real estate purchase power centered in the coastal markets and moving steadily inland into the autumn months.

From reckless lending to smart investing: the future of San Diego real estate

With Southern California moving swiftly ahead in the direction of real estate recovery, now is the time for move-up buyers to capitalize on comparatively low home prices and historically low interest rates while they still can. Here in San Diego, the time is ripe for qualified buyers in desirable coastal markets. To learn more about making the most of today’s best lending opportunities and purchasing real estate in La Jolla, Del Mar or Rancho Santa Fe, get in touch with an experience real estate agent who can point you in the right direction – and help you make the real estate investment of a lifetime.

For more information about La Jolla real estate, mortgage interest rates and local home prices, contact me, Vicki Johnson, at

Related posts:

  1. Seize the season: make the most of autumn opportunity in the San Diego real estate market
  2. Thinking of investing in beach property foreclosures? Stay on the pulse of San Diego real estate trends
  3. Decoding the 3.8% investment income tax: a guide for La Jolla real estate owners
  4. Luxury home sellers and buyers: find the best real estate agent for success in high-end markets
  5. Rental market boost bodes well for housing market recovery

Short URL:

Posted by Social Media Staff on Oct 25, 2012. Filed under Columns, Sponsored Columns, Vicki Johnson. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Bottom Buttons 1

Bottom Buttons 2

Bottom Buttons 3

Bottom Buttons 4

Bottom Buttons 5

Bottom Buttons 6

RSS North Coastal News

  • Congregation Beth Am Labor Day Picnic September 2, 2014
    Congregation Beth Am held a festive Labor Day Picnic Sept. 1. This year is the 31st anniversary of this synagogue that started in a tire store in Solana Beach. […]
  • Suspects attempt to rob Solana Beach bank ATM September 2, 2014
    An attempt to break into an ATM at a Solana Beach bank branch early Sept. 2 using a cutting torch ended with the cash machine in flames and two suspects fleeing empty-handed. The suspects set off the ATM's alarm during the failed heist shortly after 2:30 a.m. in the 600 block of Lomas Santa Fe Drive near Glencrest Drive, according to sheriff's Lt. […]
  • First phase of Earl Warren Middle School reconstruction begins in Solana Beach September 2, 2014
    As kids kicked back this summer, San Dieguito Union High School District kicked off the first phase of its complete reconstruction of Earl Warren Middle School. The $41 million project is made possible by the passage of Proposition AA. […]