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Rental Homes Gain More Room As Home Construction Drops in Colorado

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By : John Cutts    99 or more times read
Rental homes might gain a bigger share of the residential property market in some areas of Colorado as home building declined in areas like Colorado Springs and El Paso County in January 2011. Despite the slow start, most analysts are optimistic that the region will experience a gradual improvement in housing in 2011.

Colorado Springs bank owned homes remain in high supply at the start of 2011, which led to fewer housing starts in the area. Analysts measure home construction activities through the number of building permits issued to home builders. For January, Colorado Springs and El Paso County posted a 14.7% decline in permits issued compared with January 2010. Permits for single family dwellings totaled 81 in January, dropping from a total of 95 recorded in January 2010.

For the full year of 2010, permits issued for single family construction projects totaled 1,404, representing a 27.1% jump compared with the full year total of 2009. According to local housing analysts, despite the huge supplies of Colorado bank owned properties, the areas of El Paso and Colorado Springs are looking at a possible 10% jump in home construction activities this year compared with 2010 levels.

Housing experts stated that a 10% increase in home building activity this year will go a long way towards stabilizing the area's economy. They stated that with rental homes also in demand, the local residential property market can contribute to the region's economic recovery if projected housing numbers materialize.

Analysts are also encouraged by the decline in foreclosure filings for January. Although they stated that the number of bank owned foreclosed homes for sale will likely increase this year, the fact that fewer households are entering the foreclosure process for the first time is good news for the region. For January 2011, foreclosure-related filings totaled 411, representing a 4.9% drop from the 432 recorded in December 2010. However, the figure is 12.6% higher than the 365 foreclosure-related filings posted in January of last year.

Realtors and local officials are hoping that foreclosure filings will continue to decline for the rest of the year. They are also looking forward to higher demands for rental homes and more activities in the home building sector.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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