California has been hit hard by the foreclosure crisis. But it now looks as if the market is working through the state’s huge inventory of distressed properties. Foreclosures starts were down nationwide from last August by 13 percent, snapping a three-month streak of increased. In California, the news was better: foreclosure starts in the state fell by 42 percent, according to RealtyTrac.
Foreclosures in California have been on the ebb for the entirety of the year, but that doesn’t mean the state is out of the woods. We still have the third highest foreclosure rate: 1 in every 340 houses. Only Illinois and Florida were higher.
And California cities continue to struggle with the crisis. The seven highest foreclosure-rate cities for August are all in the state, with Modesto at number one. And all but two of them saw their foreclosure rate increase since July.
But the trend is still clear: the foreclosure crisis in California is getting...well, less bad. It's important to remember that even though the news for the state is basically positive, we still have a long way to go before we get clear of the catastrophe.