California’s latest economic numbers reported by forecasters at the A. Gary Anderson Center for Economic Research at Chapman University suggest that the number of foreclosures for the state will continue to dwindle for the foreseeable future. This sheds light on some of the most recent foreclosure statistics published by RealtyTrac (see our latest report), which show decreasing numbers of new filings in March and April, and May numbers up only slightly.

None of the factors that contributed to the last great rush in the state’s foreclosure pipeline back in the early 1990s is present this time around. According to Esmael Adibi, executive director of the Anderson Center, we are not headed into a recessary period, nor is there a pending threat of corporations slashing massive numbers of jobs from corporate payrolls.

The current Chapman estimate is for 226,000 jobs to be created by year-end 2006, with another 150,000 jobs added during 2007. So although the rate of job growth is expected to slow down, jobs will be created nonetheless, including new jobs in the long-beleaguered manufacturing sector. And what job losses there are – like in residential construction – should be absorbed elsewhere such as in non-residential construction.

Since unemployment rates are historically a good indicator of foreclosure rates, this bodes well for California homeowners, but less well for real estate investors, first-time home buyers and real estate professionals who may be waiting for the long-anticipated flood of foreclosure inventory.

Let us know what your experience is in your part of the state. We appreciate your comments and input.