Foreclosures are increasing in numbers every day in the U.S. while California numbers are keeping step with the national trends. In the sleepy Southern California ski resort town of Wrightwood, current numbers are showing steady increases on the local High Desert Victor Valley multiple listings service.
Wrightwood foreclosures in the two months ending 2007 totaled three with two of the homes quickly selling for $151.12 per square foot. Considering current marketing trends, and during the same period, four non fore-closures sold for $205.73 per square foot. With a discount rate of over $50 per square foot for the foreclosure homes Wrightwood real estate is making the predictable switch from a sellers market to a buyers market. Lenders have filed either an NOD (Notice of Default) or LIS (Lis Pendens) against these homes. Pre-foreclosure numbers in Wrightwood have grown to 16 with increases predicted for the near future.
The recent Southern California foreclosure wave has put considerable downward pressure on current selling prices in Wrightwood. However, there are some positive indicators that the downward trend may be slowing with the recent increase in the percent selling from 15% to 25% from January to February. (The percent selling is defined by the total number of sold divided by the total number of failed plus the total number of sold.) This movement will be further reinforced by the disappearance of winter snow and a transition to the normally strong spring through fall real estate selling months. And with the gradual response of motivated sellers to the challenging price points of foreclosure properties local real estate offices are anticipating a busy season fueled by current rate rumors and non local investors.
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