Affordability Issue Could Increase SoCal Foreclosures

Blomquist: “If home prices continue to appreciate at the same pace we’ve been seeing without a corresponding increase in wages, I would expect to see some similar single-digit percentage increases in foreclosure starts pop up across Southern California in 2018.”

IRVINE, CA—While national and Southern California foreclosure rates are at 11-year lows, foreclosures could rise in this market if some fundamentals don’t change, reports ATTOM Data Solutions.

In a new report from the firm, Michael Mahon, president of First Team Real Estate, which covers the Southern California market, says, “Across Southern California, while foreclosures have maintained historically low levels during much of 2017, housing affordability has become the concern that has many watching the market for a potential shift in the near future.” He added that with wage growth not meeting equity growth across many Southern California markets, along with rising interest rates, there are some concerns that foreclosures could be on the rise in 2018.