Thursday, May 5, 2011

Foreclosures in perspective: recent annual totals

The foreclosure filings total for the first quarter of this year was well below average and reflects a continued trend in which filings have generally decreased each month for the past six to eight months.

However, overall foreclosure totals continue to be high compared to historical numbers.

Here are some regional foreclosure totals in recent years:

The region that has improved most is the metro Denver core. Both filings and sales have dropped off significantly since the peak year of 2007.

El Paso County peaked later than metro Denver, with filings peaking in 2009. Sales at action likely peaked in 2010.

The foreclosure trends in Weld County rather closely mirror the trends of the state as a whole. Foreclosure activity peaked initially in 277, then dropped off slightly, but the county then experienced a new peak in filings in 2009. 2010 sales, however, have remained below the 2007 peak.

Mesa County may have peaked in 2010, well behind the Front Range and behind the state overall. However, while much of the state was experiencing much growth in foreclosures from 2005-2008, Mesa County experienced very little growth in foreclosures. This was due at least partially to strong real estate markets sustained by the 2006-2008 boom in oil and gas extraction.

As with Mesa County, the rural resort region in the central mountains may have peaked in 2010. While oil and has certainly had an impact in Garfield County, much of this region was preserved from foreclosure woes until late 2008 thanks to very high demand for real estate in the region. Under such conditions, it was easy for delinquent borrowers to sell homes before entering the foreclosure process. Since the financial crisis of 2008, however, demand for mountain property has declined, driving increasing numbers of foreclosures.