Foreclosures Headed Down in Colorado
May 16th the Colorado Division of Housing reported a 41 percent decrease in foreclosure filings in Colorado. There were 4,571 foreclosure filings the first quarter of 2013 across the state compared to 7,785 during the same time period last year. Actual foreclosures were down 30.5 percent from first quarter last year.
Foreclosure filings differ from foreclosures. Foreclosure filings are the paperwork; actual sales happen over 100 days later. During this time, borrowers and lenders try to work towards an agreement to bypass foreclosure. This may involve options like short sale or re-financing.
We have a supply and demand economy so as the foreclosure supply dwindles, demand for homes increases, thus contributing to increased home prices. In Routt County, the absorption rate for single family homes, Condos, and Townhomes in the Fish Creek area under $500,000 is just 3-4 months. This means, with the current supply of homes on the market, it will take just a few months for them to sell-assuming all things stay the same. Basically, in some areas of Steamboat’s market, supply is so low you have to act fast if you are a buyer so now is the time to buy. It’s been a long time since I’ve seen multiple offer situations but I am seeing them again today in Steamboat.
The foreclosure data just released is again just one more indicator of the direction our housing economy is headed. I’m optimistic and that’s just not the real estate agent in me talking; that is an opinion based on data!
Data, data, data. Staying informed on the housing market in your area can help you make wiser decisions and help you achieve your housing goals. And I can help.