Los Angeles Pre-Foreclosure Rates Drop 60 Percent in August 2024

Pre-Foreclosure Trends in Los Angeles, CA: August 2024

In August 2024, Los Angeles recorded 100 pre-foreclosure properties. This marks a significant decrease from the 202 pre-foreclosures reported in the prior month, July 2024, representing a 50% drop. When compared to August 2023, which had 249 pre-foreclosures, this year shows a 60% reduction. These changes indicate shifting dynamics in the local housing market, suggesting either improved economic conditions or successful intervention strategies to help homeowners avoid foreclosure.

Understanding Pre-Foreclosure Properties

A pre-foreclosure property refers to a home where the owner has fallen behind on mortgage payments, but the property has not yet been repossessed by the lender. During this period, owners still have the opportunity to settle their debts to retain ownership or sell the property to avoid foreclosure proceedings. Pre-foreclosures often present opportunities for investors and buyers looking for properties potentially available at lower prices.

Los Angeles vs. Other California Cities

Comparing Los Angeles with other major California cities reveals interesting pre-foreclosure trends.

**Los Angeles:** The city shows an average pre-foreclosure count of 237. In 2023, it had an average of 202 pre-foreclosures, which increased slightly to 206 in 2024. The count dropped markedly to 100 in August 2024, a significant decrease from the 249 recorded in August 2023. This indicates a dramatic improvement in foreclosure prevention over the past year.

**San Jose:** This city follows a similar trend as Los Angeles. The average pre-foreclosure count is 243, with an average of 195 in 2023 and 206 in 2024. Pre-foreclosures dropped to 100 in August 2024, down from 249 in August 2023. Both cities reflect a sharp decline in foreclosure numbers, which might be indicative of broader economic recoveries or local policy changes to assist homeowners.

**San Francisco:** Known for its stable real estate market, San Francisco’s average pre-foreclosure count is much lower at 50. The 2023 figure was 47, while 2024 saw a slight rise to 48. The numbers remained consistent with the average at 48 pre-foreclosures in August 2024, showing virtually no change from the 46 recorded in August 2023. This consistency highlights the city’s steady economic environment and robust housing market.

**Sacramento:** With an overall average of 112 pre-foreclosures, Sacramento saw an average count of 102 in 2023 and a decrease to 100 in 2024. In August 2024, only 64 pre-foreclosures were logged, down from 133 in August 2023. This city demonstrates significant variance in foreclosure rates, likely influenced by economic or employment changes.

**San Diego:** The overall average here stands at 123, with 80 in 2023 and 74 in 2024. August 2024 saw 71 pre-foreclosures, compared to 86 in August 2023. The city maintains stable foreclosure figures with subtle fluctuations, indicating steady market conditions.

Summary and Significant Deviations

**Los Angeles:** The significant drop in pre-foreclosure counts in August 2024 suggests successful interventions or an improved economic landscape benefiting homeowners.

**San Jose:** Reflected trends similar to Los Angeles, showing a notable drop in foreclosure counts from the previous year.

**San Francisco:** Maintains low and stable foreclosure counts, indicating economic steadiness.

**Sacramento:** Experienced substantial declines in pre-foreclosure rates, pointing to successful economic or policy changes.

**San Diego:** Displays stable conditions with minor fluctuations in the foreclosure counts, demonstrating consistent market health.

By comparing month-over-month and year-over-year trends, it’s clear that Los Angeles, San Jose, and Sacramento have shown remarkable improvements in their pre-foreclosure scenarios, suggesting strengthened economic conditions or successful policy interventions. In contrast, San Francisco and San Diego exhibit more stability, reflecting ongoing steady economic conditions.

Los Angeles emerges as a significant case study given its pronounced shift in pre-foreclosure rates. This sets it apart from other cities and highlights the effectiveness of its local economic policies and homeowner assistance programs.