Friday, February 28, 2014

Colorado foreclosures increase in January from November’s lows

Foreclosure filings were down 34.3 percent in Colorado metro counties during January 2014, falling to the lowest level recorded in any January since the Division of Housing began collecting monthly totals in 2007.  According to a report released Friday by the Colorado Division of Housing, foreclosure auction sales in Colorado’s metropolitan counties were down 37.1 percent in January 2014 compared to January of last year, dropping from 930 to 585.  Over the same period, foreclosure filings dropped from 1,456 to 957. 

While down year over year, foreclosure filings and sales have increased month over month for the past two months. Both filings and sales hit new lows during November 2013, but since then, filings are up 51 percent, and sales are up 45 percent.  

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.

“It may be that foreclosure totals bottomed out for the time being during November, and will move back up over the next year,” said Ryan McMaken, an economist with the Colorado Division of Housing. “Even if 2014 has more foreclosures than 2013, we’ll still likely be looking at levels well below what we saw from 2006 to 2011.”

All counties surveyed except Mesa County showed decreases in foreclosure auction sales during January when compared to January of 2013. The counties with the largest decreases in foreclosure auction sales, year over year, were Broomfield County and Larimer County where auction sales decreased by 81.8 percent and 55.6 percent, respectively. Mesa County, reported an increase of 18 percent over the same period.

The county with the highest rate of foreclosure sales during Jannuary was Mesa County with a rate of 989 households per foreclosure sale. Pueblo County came in second with 1,225 households per foreclosure sale. The lowest rate was found in Broomfield County where there were 11,176 households per foreclosure sale.

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.