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Foreclosure rate lower in SCV than other areas of state

Posted: April 3, 2008 4:43 p.m.
Updated: June 4, 2008 5:05 a.m.
 
The number of foreclosures in the Santa Clarita Valley is relatively low when compared to other parts of Southern California, according to an economist with the California Economic Forecast.

Statewide, high rates of foreclosures are usually seen in areas with new home production, first time entry level buyers and lower price home markets, along with potential buyers who purchase homes with subprime loans, explained Mats Olsen, an economist.

Olsen points out that the Santa Clarita Valley is "affluent" and adds that there hasn't been quite as much new home production nor has the area seen entry level first time home buyers.

"It has not been hit as bad as the other inland areas," Olsen said, referring to Riverside and the surrounding cities.

Instead, Olsen said that Santa Clarita Valley is looking more like the coastal regions in terms of the amount of homes being constructed and type of potential home buyers.

Specific numbers for foreclosures in the Santa Clarita Valley were unavailable, as the economic forecast office is currently gathering data for the local area.

Olsen also referred to the subprime loans to illustrate that the number of foreclosures is much lower than other parts of Southern California, like the Antelope Valley.

"What we were seeing during the bubble years in 2004 and 2005 in the Antelope valley is that subprime loans were nearly 50 percent of all the loans," he said. "The SCV was 25 percent. That's a huge difference right there."

He later added, "The most salient point is that we haven't seen the same fallout that we've seen in the Antelope Valley," referring to Palmdale and Lancaster, which have much higher rate of foreclosures.

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