L A South Bay Real Estate

Big Drop in LA County Foreclosures Again

Posted on 28. Jul, 2010 by Barry Brickel in Market Forecasts, real estate news

The foreclosure activity for Los Angeles County continues on a down trend. We are showing a peak formed in the first quarter of 2009. This is an extremely reliable timing tool and another confirmation of the bottom in the Real Estate market as projected in the newsletter, LA South Bay Real Estate Forecast and the start of a new uptrend. That buy signal was introduced in March 2009.

The number of foreclosures reported by Dataquick news for Los Angeles county was reported on July 21, 2010. The number of Notice of defaults issued in the county was at  13,045 that was down 47.0 % from the second quarter of 2009. The chart below plots the quarterly activity since the second quarter of 2007. As you can see a peak appeared in the first quarter of 2009.  Because of the large size of the data we have high confidence it its ability to confirm the trend.

LA County Properties in Foreclosure – Quarterly

The chart below clearly shows why this a very reliable timing tool:

LA County Properties in Foreclosure – Annual

It is very easy to understand why this is a very important indicator based on supply and demand principles. When the Annual inventory of foreclosures is down the market will recover. The annual data based on the quarterly chart trend (first chart) is predicting 2009 will be the peak year with a lower number of foreclosures for 2010. The second chart will show lower number of foreclosures for 2010 in the future, The chart will be revised in March 2011 after the official data comes in. All this illustrates the low risk of investing in LA South Bay real estate. This must be weighed against the health of the national economy but that must be considered in every investment.

According to Mr Trump you make money in real estate when you buy not when you sell.

If you have any questions on the above please feel free to contact me.