Lisa Simpson
May 28,2009
In: Foreclosed Homes

San Diego Foreclosed Homes

San Diego

San Diego City is the second largest in California hugging the Pacific. It is also the seat of San Diego County and the centre of economic activity for the metropolitan area comprising of San Diego-Carlsbad-San Marcos.

San Diego foreclosed homes is the result of the foreclosure crisis sweeping across USA. California is one of the top states badly mauled by this menace. The increasing number of San Diego foreclosed homes is proof of this. To understand the logistics behind San Diego foreclosed homes a quick survey of the economics and demography will be of help.

Foreclosures have always been there but what is causing concern is the staggering number of San Diego foreclosed homes. The San Diego foreclosed homes comprises mostly of the residential homes. The commercial houses are just beginning to feel the pinch of foreclosure as the economy is closely linked with one reacting on the other. San Diego foreclosed homes are because during the housing boom sub-prime mortgages were peddled to those who did not have the income level to maintain these. But when the initial low interest rates began to spike the borrowers began to default leading to an increase of San Diego foreclosed homes.

The population in San Deigo consists of 49% Whites, 25% of Hispanics, 14% of Asians and 8% Blacks. It has been alleged that the Hispanics are the worst victims of this foreclosure crisis.

It is the local economy together with federal help that can bail out the city from the foreclosure mess. The economy of San Diego is based on three large sectors – defense, manufacturing and tourism. The port has a dominating influence on the economy.

The years preceding 2006 saw a dramatic rise in housing activity and prices in San Diego increased. Median prices shot up by three times from 1998 to 2007. But the household income of the average resident did not increase. The years 2005 and 2007 saw a sharp decline in housing prices. The pace accelerated in 2008 without any signs of letting down this year. This has led to a population exodus from the city. Speculating investors during the housing boom are blamed for the situation today.

In the first quarter of 2009 the increase of foreclosure numbers was by 12.7% in comparison to the first quarter of 2008. In the county 10,111 homeowners were served default notices during this first quarter of 2009. In 2008 there had been 8,975 notices according to MDA DataQuick of La Jolla.

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