Foreclosure Declines in Solano County

December 9th, 2008

Good news has arrived for the real estate region of Solano County. The rate of foreclosure per household is decreasing in this county. However, this is not completely good news for Solano as the rate of foreclosure is even then in a very bad condition as is the case with other places. According to some experts, this condition is going to become fine with the advent of the next year. According to one of the real estate experts, Serdar Bankaci, the rate of foreclosure in Solano County is nearly 8.54 percent. This figure is almost four times higher than the average nationwide, which stands at 2.5 percent.

The State Employment Development Department has put forward that the economy of Solano County is not in a good shape. It has been found that the rate of unemployment is approximately 7.7 percent. This however does not make Solano County the worst foreclosure affected real estate area of California. According to Bankaci, Riverside owns the credit of this dubious honor. The rate of foreclosure in Riverside was about 12.12 percent a year back. In the month of January 2007, the number of foreclosed households in Solano stood at 224. In the last August month, this number grew to nearly 1,528. A month back, the county had a total number of 759 foreclosures.

According to a data, the total number of foreclosures in Solano County over the last 12 months was 12,531. Bankaci has a feeling that this problem of foreclosure is likely to get worse before it starts improving. He said, "The reason we see the slowdown last month is the new law California passed, requiring a 30-day notification period. But this only postpones the inevitable in most cases, and we’re already seeing an increase again in foreclosures in October." Lori Collins, president of Solano Association of Realtors agrees with the assessment of Bankaci. However, she believes that the rate of foreclosure is going to remain low during holidays.

However, even if the sales activity goes up, the value will continue to fall in the Vallejo area as well as all throughout the state. Bankaci said, "In some areas of northern California, including Solano County, we have seen home prices fall between 30 and 40 percent. I think things will continue to get worse for about three to six more months, before we see the area hit bottom and begin to recover." Any kind of planned intervention from government won’t be able to make an instant effect.