In December, California notices of default recovered some of the 32% decline experienced during November by being up 11.9% on a monthly basis. Despite the December gains, notices of default have fallen 44% over the last year.
Additionally, notice of trustee sale decreased 910% in December. Overall, these are down 59.3% for the year.
Lastly, foreclosure sales gained 10.4% for the month but sank by 53.5% for the 12-months ending December 2013.
REO inventory remained basically unchanged month-over-month at approximately 42,000 properties. Housing units taken back by banks has remained under the 45,000 mark since last June. Since December 2012, bank-owned inventory is down 29.6%.
Meanwhile, preforeclosure inventory retreated from November by 2.4% to nearly 39,000 housing units, while scheduled for trustee sale inventory dropped 6.9% to about 20,000 properties.
Foreclosure activity has now reached pre-housing crisis levels, said Madeline Schnapp, director of economic research for Truckee, Calif.-based PropertyRadar.
The gradual California housing recovery and the numerous government programs available to homeowners facing default are working together to keep foreclosure activity at low levels.