Wednesday, June 19, 2013

Colorado foreclosure filings dive 50 percent in May

Foreclosure filings were down 50.5 percent in Colorado metro counties during May 2013, falling year over year to the lowest level recorded during May in any year since the Division of Housing began collecting monthly totals in 2007.  According to a report released Wednesday by the Colorado Division of Housing, foreclosure auction sales in Colorado’s metropolitan counties were down 25.4 percent in May this year compared to May of last year, falling from 965 to 720.  Over the same period, foreclosure filings dropped from 2,249 to 1,113.   

For the first five months of the year combined, from January through May, foreclosure filings were down 43.4 percent in 2013 when compared to the same period last year. Foreclosure auction sales were down 29.4 percent over the same period.

Foreclosure filings are the initial filing that begins the foreclosure process, and foreclosure auction sales totals are the total number of foreclosures that have been sold at auction at the end of the foreclosure process.

“The decline in foreclosure activity has clearly accelerated since the beginning of 2013,” said Ryan McMaken, an economist for the Colorado Division of Housing. “And a downward trend is likely to continue as long as employment is stable and we continue to see low mortgage rates.”   

Year-to-date through May this year, compared to the same period last year, the counties with the largest drops in foreclosure filings were Douglas and Arapahoe counties where filings decreased by 49.2 percent and 46.4 percent, respectively.  All counties surveyed reported year-to-date declines of 30 percent or more in foreclosure filings, when compared to the same period of last year.

Foreclosure auction sales were also down in all counties surveyed in the year-to-date numbers, with Denver and Douglas counties reporting the largest declines, year over year.  Year-to-date through May, auction sales were down 39.2 percent in Douglas County and 40.4 percent in Denver County, compared to the same period of last year.

The county with the highest rate of foreclosure sales during May was Mesa County with a rate of 940 households per foreclosure sale. Pueblo County came in second with 1,221 households per foreclosure sale. The lowest rate was found in Broomfield County where there were 10,980 households per foreclosure sale during May.

The Division of Housing’s monthly foreclosure report surveys foreclosure activity in the twelve metropolitan counties of Colorado. The report is a supplement to the Division’s quarterly foreclosure report that includes all counties in Colorado