Friday, November 30, 2007


Although we began 2007 as the “most foreclosed upon state in the country”, as we near the end of 2007 Colorado has (thankfully) fallen out of the top 10. This month, reports that Colorado foreclosures have fallen 22.6% year over year, the biggest drop in the nation. Arizona, by comparison, saw foreclosures rise by 293%. Nationally, foreclosures this year are up 92%.

Tuesday, November 20, 2007


As the headlines cried out, 2007 was one of the most tumultuous years on record for the UnitedStates housing market. For the first time in 25 years, the median price of a home in Americamoved lower. Rising numbers of foreclosures turned many formerly “hot” markets upside down, and the prevalence of gimmicky financing programs based on the theory of endlessly appreciating values came tumbling down like a house of cards.

Here in Colorado, our challenges traced back much further, perhaps all the way to 2001… to an oversupply of new homes, post 9/11 economic troubles in the airline industry and the high tech sector, and the dubious distinction (finally corrected in 2007) of being one of only two states in the country which required NO licensing or registration of any kind for mortgage brokers.

The result: too many homes, not enough high paying jobs, and rampant mortgage fraud. Under that formula, Colorado entered 2007 number one in the nation in foreclosures per capita. Many areas, particularly those east of I-25, such as Greeley, Brighton and Aurora, became known as “foreclosure alley”, and values dropped in many parts of the state.

Spring forward toward the end of 2007, however, and the picture appears to be changing. In August, the National Association of Realtors caught many off guard when it named the Denver region as one of its top five projected housing markets in the country for 2008. Since then, NAR has reinforced that position by placing Denver on its preliminary list of top five markets for 2009, as well.

Working in the field, I have seen a lot of positive indicators over the last half of 2007. Many of you have worked with me, either as investors or first-time buyers, in picking up properties out of foreclosure. Some of those deals were just amazing, and while 2007 was a challenging year for many home sellers, buyers picked up some incredible bargains.

Those of you well-acquainted with me know that I am a hound when it comes to research. Over the next several days, I'd like to share with you some of the reasons 2008 is poised to be great!