The end of last year saw a significant dip in foreclosures for California due to several factors including, but not limited to, an increase in home prices, people becoming more diligent with timely mortgage payments, and a steadily improving economy bolstered by new job growth.

The beginning step of any foreclosure is known as a default, and the number of these dipped by 10.8 percent for the final quarter of 2013. A total of 18,120 notices of default were filed against homeowners, making this the lowest total seen since the final quarter of 2005. Alongside this new trend, median home prices in California saw an increase of 22.1 percent from 2012, reaching $364,000 in the final quarter of 2013. This increase is being influenced by a shortage of homes for sale, with both families and investors battling over slim pickings. There is the appreciation factor to consider, as well, with more families electing to hold onto their homes to see what they may be worth down the line. If a family’s home is about to be foreclosed upon, the appreciation factor could give them incentive to stay.

Of the 18,120 default notices filed, 17,773 were for homes since some of these homeowners were placed in default over multiple loans. Completed foreclosures saw a rise to 2.2 percent from the final quarter of 2013. Affordable areas in California are still seeing the most foreclosures, despite recent price gains.

Source: http://www.latimes.com/business/money/la-fi-mo-foreclosures-california-20140121,0,3704573.story