California home foreclosure starts plunge to new 8-year-low in second quarter as prices soar

Economic Indicators Associated Press

A research firm says California home foreclosure starts slid to the lowest level in more than eight years during the second quarter, thanks to higher home values.

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DataQuick said Thursday that there were 17,524 default notices filed from April to June, down 9 percent from the first quarter and down 32 percent from the second quarter of 2013. It is the lowest level since the fourth quarter of 2005.

Most home loans going into default originated from 2005 to 2007.

The housing rally has left fewer homeowners owing more money than their properties are worth. DataQuick reported Wednesday that California's median sales price for new and existing houses and condominiums reached $393,000 last month, the 28th straight annual increase and the highest level since December 2007.