Home Price Index Falls 12.7% in February -  The February 2008 S&P /Case-Shiller Home-Price Index comprised of repeat home sales in 20 U.S. metropolitan areas dropped 12.7% in February 2008 from February 2007.  All of the 20 Metropolitan Areas in the Index, except Charlotte, showed year-over-year declines in prices in February, led by Las Vegas, Miami and Phoenix with declines of 22.84%, 21.72% and 20.80% respectively.

<>The California Metropolitan Areas of Los Angeles, San Diego and San Francisco are among the 20 metropolitan areas tracked by the Index.  The Metropolitan Areas of Los Angeles, San Diego and San Francisco showed year-over-year declines of 19.43%, 19.19% and 17.19% respectively.  The historic price peaks and price declines for each Metropolitan Area in the Index varied.  Los Angeles showed a price decline of 21.58% from its price peak in September 2006, San Diego showed a price decline of 23.97 from its price peak in November 2005 and San Francisco showed a price decline of 20.07% from its price peak in May 2006.   More….

San Diego County’s NODs & Trustee Deeds show significant increase in April -  The San Diego County Recorder’s Office recorded 3,601 NODs in April 2008, up 9.65% from the 3,284 NODs recorded in March 2008 and up 140% from the 1,499 NODs recorded in April 2007.  The Recorder’s Office also reported an increase in recorded Trustee Deeds in April 2008 to 1512, up 30% from the 1,161 Trustee Deeds recorded in March 2008, and up 150% from the 604 Trustee Deeds recorded in April 2007.  Trustee Deeds reflect the ownership conveyance of a property in default to the highest bidder at the Trustee’s Sale (foreclosure sale).

California’s statewide foreclosure activity sets new record in 1Q2008. -  According to DataQuick, a subsidiary of Vancouver based McDonald Dettwiler and Associates, lending institutions sent California homeowners 113,676 Default Notices during 1Q2008, up 39.4% from the 81,550 NODs sent out during 4Q2007 and up 143.1% from the 46,760 NODs sent out during 1Q2007.  The 113,676 NODs sent out in 1Q2008 was the highest in DataQuick’s statistical history which goes back to 1992 (more than 15 years).  Although 113,676 NODs were sent out, the number of property owners impacted was 110,392.  This 3% shrinkage was due to multiple loan defaults on the same property (i.e. 1^st & 2^nd Trust Deeds).<>

The highest number of NODs by region for 1Q2008 were recorded in; the 7 county Southern California region (65,309 up 144% from 1Q2007), followed by the 16 county Central Valley region (26,793 up 142% over 1Q2007), and the 8 county Bay Area region (16,398 up 143% over 1Q2007).  The balance of the 1Q2008 NODs were recorded in the less populated Mid-Coastal, Mountain and Northern California regions. <>The number of Trustee Deeds recorded during 1Q2008 was also the highest in DataQuick’s statistical history, which goes back to 1988 on these recordings.  The number of Trustee Deeds in 1Q2008, or the actual loss of a home to foreclosure, was 47,171 up 48.9% from the 31,676 Trustee Deeds recorded in 4Q2007, and up 327.6% from the 11,032 recorded in 1Q2007.

Most of the loans that went into default during 1Q2008 were originated between August 2005 and October 2006.  The median age of the loans that defaulted during 1Q2008 was 23 months.  Of the homeowners in default, an estimated 32% emerged from the foreclosure process by bringing their loans current, refinancing, or selling the home and paying-off what they owe.  A year ago it was 52%.  In addition to the slow real estate market and declining property values, the increased ratio of homes lost to foreclosure includes a significant number of homes bought during the height of the market with multiple loan financing, which makes primary lender “work-outs” more difficult. Multiple loan purchase financing peaked in 4Q2006 at 60.9% of all financed home purchases.   More… <>

Fitch Ratings Ups subprime mortgage pool losses to 28%.  According to the San Diego Daily Transcript, Fitch Ratings said Thursday (March 20, 2008) that it expects subprime mortgage pool losses to increase to 28% from its prior (August 2007) estimated losses of 10 to 15% for subprime mortgage pools.  In its “Update on U.S. Subprime and Alt-A Performance and Rating Reviews” (Update Report), Fitch surveyed 185 mortgage pools from 2006 totaling $146.1 billion and 63 mortgage pools from 2007 totaling $48.7 billion for their Update report. The Update Report noted significantly higher default rates for the most recent vintage pools (2006 and 2007) over the default rates for older vintage pools (2000 to 2005).  The causes cited for these high early default rates included; the decline in prices, high risk loans, the nominal RMBS origination's since mid 2007, slow loan servicer modifications and the growing inventories of foreclosure and REO properties in the market. Fitch also increased it’s related “estimated loss severity” for every dollar in loans when the foreclosed properties are sold, from 40 cents in August 2007 to 60 cents in March 2008.

San Diego County apartment rents up 3.96% in last 12 months - According to the San Diego Daily Transcript, the MarketPointe Realty Advisor’s bi-annual (March 2008) San Diego County Apartment Market Survey indicated that the current average apartment rent in San Diego County is $1,311 (+3.96%) compared to the March 2007 average apartment rent of $1,261.  The Survey also reported the overall vacancy rate in the County for March 2008 at 3.63% compared with March 2007 overall vacancy rate of 4.54%.   The MarketPointe survey included 796 apartment complexes in the County with a total of 114,681 units.  Complexes with fewer that 25 units were not included in the Survey.  The average rental rates in the County’s sub-markets ranged from $1,719 in the North County Coastal sub-market to $1,135 in the Western part of San Diego’s Uptown sub-market. The Downtown San Diego sub-market had an average rent of $1,614 per month with a noticeable market rental differential within this sub-market for newer units that came on the market since 2003 versus units that came on the market during 1998 to 2002, and prior to 1998.  The average rents for Downtown San Diego’s newer units (since 2003) reflected a premium of 5% and 50% over the averages for the vintage units of 1998-2002 and units prior to 1998, respectively.  The average vacancy rates for the County’s sub-markets ranged from a high of 5.03% along the Interstate 15 Corridor to a low of 1.62% in the Uptown West sub-market.  MarketPointe also noted that even if all of the 9,937 units (57 projects) that are in the planning stage for the County are built, they won’t be enough to satisfy the housing demand, particularly when the economy picks up.