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Conditions Great for Colorado Springs Foreclosure Investing

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By : John Cutts    99 or more times read
Economic conditions are now improving, making Colorado Springs foreclosure investing more viable and profitable.

Most cities in Colorado are now recovering from the downturn, as shown in the slowdown in foreclosure activity between the months of February and March by 21.5 percent.

The number of residents looking for work also dropped in March to 209,800 compared to the 211,700 people looking for jobs during the same month in March last year. The unemployment rate, however, rose from 7.7 percent in February to 7.9 percent in March not because of further loss of jobs, but because of the increase in number of residents that entered the labor market when they saw the economy was improving.

Based on data from the Colorado Department of Labor and Employment, the number of Colorado residents working dropped from 2.52 million in March 2009 to 2.44 million in March this year, with both numbers seasonally adjusted.

The federal government had posted the highest rate in hiring while the construction sector posted the biggest drop in jobs.

In contrast to drops in foreclosures in the Colorado cities of Littleton and Golden, Colorado Springs foreclosure investing became easier for investors in the city as filings jumped up by 25 percent to 470 units in March, based on records at the El Paso County Public Trustee office.

Meanwhile, another real estate firm reported that the number of properties taken back by mortgage lenders through public foreclosure auctions in Colorado increased. The number of units that entered foreclosed properties listings in March climbed up from 1,719 units in February to 2,141 units in March, an increase of 24.55 percent.

Bank owned homes accounted for 33.4 percent of total foreclosure postings in February while bank owned units accounted for 34.24 percent of all foreclosures filed in March.

In the entire third quarter, bank owned homes comprised 33.1 percent of all foreclosures filed or 5,303 units of the more than 16,000 homes notified of default, foreclosure sale or repossession.

The continued weakness of prices and occupancy rates in the commercial property market in Colorado Springs is also a good factor for commercial investors. In the first quarter, the vacancy rate for offices, shopping centers and industrial buildings in the city was still high at 13 percent.

Despite the mixed data, Colorado Springs foreclosure investing is viable because of improvements in economic conditions and the lower prices of both nondistressed and distressed real estate properties in the residential and commercial sectors.

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