Foreclosures are down in Colorado by 14% in the first nine months of this year while national statistics show foreclosure filings throughout the country increasing by over 120%, according to a new report by the Colorado Division of Housing.
A total of 16,246 foreclosures have been completed in Colorado so far in 2008.
"2006 and 2007 saw big increases in filings of 30 to 40 percent," said Kathi Williams, director of the Colorado Division of Housing. 'There are still reasons for concern, but this is good news."
Denver County has shown the biggest drop in foreclosure filings this year, down 26 percent compared to the third quarter of 2007. Weld County foreclosures are down 20% and Adams County foreclosures are down 19%.
Increased pressure on lenders to work with troubled homeowners and massive funding commitments by the Federal Reserve to purchase mortgage loans from private lenders are also reducing the number of owners losing their homes.
Again, the story in our market right now is the massive disparity between the firey demand for homes under $250,000 and the ice cold condition of homes at higher price points.
Investors and first-time buyers continue to compete for well-priced entry level homes, while those with more exposure in the stock market (normally those at higher price points) are licking their wounds and pulling back.
Further government efforts to slow foreclosures figures to thin out our inventory even further in 2009.
Historically, the leading indicator for a housing market recovery is finding a "bottom" and then seeing entry-level prices begin to rise. While the nation's housing market remains very uncertain, the Denver Metro area appears to be on the backside of its troubles.