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Home Foreclosures in Denver Slowed, Pushing up Prices

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By : John Cutts    99 or more times read
Home foreclosures in Denver slowed in 2009 and in January 2010, pushing up prices, based on reports from research firms and from the Colorado Division of Housing.

In the Denver metro area, a total of 28,962 households received foreclosure or default notices, marking a decrease of more than 12 percent from total filings in 2008. The number represented 2.8 percent of all residential units in the area.

Among the largest counties of Colorado, Denver and Douglas posted the two biggest drop rates in foreclosure postings in January 2010 compared to January 2009. Filings fell by 17 percent in Denver and dropped by 26 percent in Douglas. In contrast, foreclosures in Mesa County surged by a staggering 159 percent, posting the biggest increase in foreclosure postings in January this year.

In Larimer County, foreclosure filings also declined in January, posting a drop of over 10 percent compared to filings in January 2009. However, total sales of foreclosed homes climbed up by more than 53 percent.

Home foreclosures in Denver followed the declining trend of Colorado home foreclosures in January this year. Statewide, total foreclosure filings dropped by more than 16 percent to 5,029 filings. Of these filings, a total of 1,782 units were already in bank listings of real estate foreclosure homes for sale.

According to state housing records, foreclosure filings in the largest counties in Colorado dropped year-over-year by 3 percent in January this year, but foreclosure sales surged by 61 percent. Compared to January 2008 data, however, foreclosure sales dropped by 29 percent and foreclosure filings fell by 17 percent.

Colorado housing analysts said that the recent data showing declines in foreclosure filings and increases in foreclosure sales are reflecting overall trends in the housing market nationwide. Because of the significant time lag between foreclosure filings and sales, which is usually six or eight months, foreclosure filings and sales can have different directions.

Analysts added that if the relationship between foreclosure postings and sales continues, sales of foreclosures will start to fall in the spring.

According to the housing price index of Standard & Poor’s/Case-Shiller, home prices in the Denver metro area have been showing improvements in the last ten months of 2009.

In November 2009, the Denver home price index rose year-over-year by 0.5 percent, putting the city third in price index improvement behind only San Francisco and Dallas. The price appreciation was an indication that home foreclosures in Denver have been weakening their downward price impact on housing prices.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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