CITYWIDE In a community whose relative wealth seemed to serve as a barrier to foreclosures, the aftermath of the subprime mortgage crisis is starting to poke through the shield surrounding Santa Monica.
Cases of defaulted mortgages have increasingly creeped into Westside communities in recent months, particularly in the seaside city where there have been 47 first-time foreclosures since the beginning of the year, a spike compared to 2007 when there were only 31, according to the latest figures by PropertyShark.com., a New York-based company that provides property information to real estate professionals and investors.
The company’s July 2008 report found that while the problem once seemed isolated to the Palmdale and Lancaster areas of the county where home development had skyrocketed the past several decades, defaulted mortgages are also making their way west.
But, the numbers are still low compared to the rest of the county where there has already been more than 15,000 foreclosures this year.
“Places like Santa Monica, we’re still talking single digits to low teens in terms of counts each month, so it’s still nothing compared to the wider problem in other areas,” Brian Scully, the vice president of marketing for PropertyShark.com, said.
The number of foreclosures was in the single digits until May when 11 cases were reported. Another 12 were counted in June, dropping to seven in July.
While there has been foreclosure activity in the city, housing prices for single-family homes have remained stable in the past year, according to Kate Bransfield, a realtor in Santa Monica.
What has dipped is the number of sales. Homes, particularly in the north of Montana Avenue neighborhood, are staying on the market longer, primarily because buyers are taking their time, looking for FROM REAL ESTATE PAGE 1 PLACES LIKE SANTA MONICA, WE’RE STILL TALKING SINGLE DIGITS TO LOW TEENS IN TERMS OF COUNTS EACH MONTH SO IT’S STILL NOTHING COM- PARED TO THE WIDER PROBLEM IN OTHER AREAS.”
Originally published in the Santa Monica Daily Press print edition on August 8, 2008. Read the original PDF.