Fewer foreclosures in Colorado means less inventory

Monica Mendoza
Denver Business Journal

Colorado’s forecloses are down 3 percent in the first half of 2015 from one year ago, according to a report from real estate data company RealtyTrac Inc. today.
The downside is fewer foreclosures could make it tougher for home buyers to find a home in the already-tight Denver market. The upside is a robust real estate market.
Foreclosure filings, from January to June, were at one in every 350 properties in the state, which brings the total to 3,096, or 29 percent of the housing units in the state, according to RealtyTrac’s mid-year 2015 foreclosure market report.
“The reduction of foreclosures is adding to the limited inventory in the market as a whole and increased appreciation,” said Greg Smith, owner/broker at Re/Max Alliance, covering the Denver market in Colorado, where foreclosure starts in the first half of 2015 were less than half the number of foreclosure starts in the first half of 2006.
“Today the decline in foreclosures, combined with limited new construction, nominal resale inventory, and delayed entry of millennials in to the buying cycle is contributing to a very robust real estate market for the foreseeable future,” he said.
As for its rank in the country, Colorado is No. 28 among the states in terms of number of foreclosures. Florida once again tops the list with the highest number of foreclosures at one in every 95 homes.
Foreclosure filings are the initial documents, filed with county public trustee’s offices, that are used to start the foreclosure process. That process ends with the sale of a property at auction, unless debt related to the property is repaid.
Nationwide, there were a total of 597,589 U.S. properties with foreclosure filings — default notices, scheduled auctions and bank repossessions — in the first half of 2015, down 13 percent from the previous six months and down 3 percent from the same time period in 2014.
A total of 304,439 U.S. properties started the foreclosure process in the first half of the year, down 4 percent from a year ago and 18 percent below foreclosure starts in the first half of 2006 before the housing price bubble burst in August 2006, according to the report. First-half foreclosure starts 2015 were at their lowest level in any year since RealtyTrac began tracking in 2006 — a 10-year low.

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