Sales of Residential and Condo Foreclosures Improved in Colorado
Last year seemed to be a good one for the Colorado housing market as sales of foreclosed residential properties, including condo foreclosures, jumped from 2009 figures, while foreclosure-related filings declined. However, housing experts remain cautious about the status of the state's housing industry, asserting that declaring a recovery right now will be foolhardy.
Houses sold at foreclosure auctions in Denver and in most key areas of the state recorded increases last year. Statewide, sales of foreclosed properties jumped by 10% compared with 2009 sales figures. In terms of foreclosure filings, the total number dropped by 10% from the previous period, with the number of properties entering the foreclosure process for the first time estimated to be near 41,000 in 2010. In 2009, foreclosure starts totaled 46,394, a period believed by some analysts to be the peak for new foreclosures in the state.
Although sales of properties at Colorado foreclosure auctions have risen and foreclosure-related filings have declined, foreclosure activities are still near the 2007 and 2008 levels, which are largely considered as the worst periods for the state's housing market. The good news is that Colorado did not post new foreclosure records last year.
Analysts have stated that it is too early to consider year-end figures as signs that the housing market is on its way towards a recovery. However, they did concede that, with sales of residential and condo foreclosures improving and filings declining, it seems that Colorado's housing industry is starting to level off. They stated that new foreclosure filings have been dropping for a few months now, which might mean that the peak has already been reached in 2009.
Furthermore, areas like Adams and Denver, which had some of the highest number of properties under foreclosure auctions during the worst of the home market crisis, are starting to show declining totals. If these areas continue to record declining numbers of foreclosures in 2011, analysts stated that the statewide rate will likely drop further by the end of the year.
Meanwhile, further increases in residential and condo foreclosures sales will also help the market recover. Total number of foreclosed property sales for 2010 is estimated to be around 21,000, representing a 10% increase from the previous year.
