Monday, June 30, 2014

Colorado foreclosure filings down 31 percent in May

Foreclosure filings were down 31.4 percent in Colorado metro counties during May 2014, 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 45.0 percent in May this year compared to May of last year, falling from 720 to 396. Over the same period,foreclosure filings dropped from 1,113 to 763. For the first five months of the year combined, from January through May, foreclosure filings were down 25.3 percent in 2014when compared to the same period last year.

Foreclosure auction sales were down 40.3 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. “We're looking at an eight-year low for May foreclosures, and both filings and sales have fallen, year over year, for the past nineteen months," said Ryan McMaken, an economist for the Colorado Division of Housing. “The downward trend is likely to continue as long as employment is stable and we continue to see rather low mortgage rates.”

 Year-to-date through May this year, compared to the same period last year, the counties with the largest drops in foreclosurefilings were Broomfield and Douglas counties where filings decreased by 53.4 percent and 48.4 percent, respectively. All counties surveyed reported year-to-date declines in filings, except for El Paso County which reported an increase of 0.6 percent. Foreclosure auction sales were down in all counties surveyed in the year-to-date numbers, with Boulder and Larimer counties reporting the largest declines, year over year.

Year-to-date through May, auction sales were down 58.3 percent in Boulder County and 53.9 percent in Larimer 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 1,578 households perforeclosure sale. Pueblo County came in second with 1,676 households per foreclosure sale. The lowest rate was found in Boulder County where there were 30,820 households per foreclosure sale during May. #222222;">May.

May 2014 Foreclosure Report for Metro Counties

May 2014's monthly foreclosure report.

Tuesday, June 17, 2014

Colorado's mortgage delinquency rates fall during 2014's first quarter

Serious mortgage delinquencies in Colorado fell from the fourth quarter of 2013 to the fourth quarter of 2014, dropping to the lowest level recorded since 2008.  During the first quarter, the 90-day delinquency rate was 1.3 percent in Colorado. The rate was 1.5 percent during the fourth quarter of 2013.  The national 90-day delinquency rate was 2.39 percent during the first quarter of 2014, and it was 2.55 percent during the fourth quarter of 2013.

The first graph shows the 90-day delinquency rates since 2005:



30-day delinquencies for the first quarter of 2014 were at a nine-year low for the first quarter, and were at the lowest level recorded in any quarter since 2006. During the first quarter of 2014, 1.71 percent of loans in Colorado were 30-days delinquent.  The rate was 2.12 percent during the 4th quarter of 2013, and it was 2.18 percent during the first quarter of 2013.  A new low in 30-day delinquencies suggests more declines in foreclosure activity in Colorado, at least in the short term.



The foreclosure inventory also fell during the first quarter of 2014 in Colorado and has fallen for the past fourteen quarters in a row. Colorado's foreclosure inventory dropped to 0.94 percent during the first quarter of 2014, falling from 2013's fourth-quarter rate of 0.96 percent. The inventory was also down from 2013's first-quarter rate of 1.38 percent. The third graph shows the foreclosure inventory in Colorado and the US:




National Comparisons:

As can be seen in the first and third graph, Colorado's foreclosure inventory and 90-day delinquency rates are well below the national rates.

The U.S. foreclosure inventory rate was 2.65 percent during the first quarter of 2014.

Using the 90-day delinquency rate to compare Colorado to all other states, we find that Colorado had the sixth-lowest delinquency rate in the nation during the first quarter of 2014. The only states with lower 90-day delinquency rates were North Dakota, South Dakota, Montana, Wyoming and Alaska. The lowest 90-day delinquency rate in the nation was found in North Dakota where it was 0.49 percent, and the highest rate was found in Mississippi where it was 4.2 percent.

Delinquencies are measured by the MBA via surveys sent to major loan servicers. The MBA estimates it covers 88 percent of all first-lien residential mortgage loans outstanding in the US with the survey.

Wednesday, June 11, 2014

1st Quarter 2014 Statewide Vacancy and Rent Survey

Apartment rents soar in northern Colorado as vacancies fall across state

Rents in Colorado rose statewide during the first quarter of 2014, with the statewide average rent hitting an all-time high of $1,026. According to a report released today by the Colorado Division of Housing, the average rent during the first quarter was up 8.0 percent from last year’s first-quarter average rent of $950, and it was up from last year’s fourth-quarter rent of $992.

Rent growth was not uniform statewide. The average rent was flat in Pueblo from the first quarter of 2013 to the first quarter of 2014. In Grand Junction, during the same period, the average rent fell 5.2 percent. On the other hand. rents soared in northern Colorado with the average rent rising 17.2 percent, year over year, in Ft. Collins, and 12.6 percent in Greeley. 

Average rents in all metropolitan areas measured for the first quarter of 2014 were Colorado Springs; $822, Ft. Collins, $1216; Loveland, $1026; Grand Junction, $525; Greeley, $793; Pueblo, $595. The average rent in metro Denver, measured last month in a separate survey, was $1,073. 


“Rent growth has accelerated in northern Colorado and metro Denver over the past year, pushed along by job growth and demand that continues to outpace new construction in many market areas," said Ryan McMaken, an economist with the Colorado Division of Housing. "We have seen vacancies pushed up a little in some markets with a significant amount of new multifamily construction, such as Colorado Springs and metro Denver, but it has not been enough to push the average rent back down. 

The vacancy rate in Colorado apartments during the first quarter of 2014 rose across the state with the statewide composite vacancy rate rising year over year to 5.2 percent from 2013’s first-quarter vacancy rate of 4.9 percent. The first quarter’s rate was down from 2014’s fourth-quarter rate of 5.4 percent.

Vacancy rates varied in different metros of the state, however, with the Ft. Collins/Loveland area’s vacancy rate dropping to a thirteen-year low of 1.7 percent while Colorado Springs’s vacancy rate increased to 6.7 percent. Grant Junction's vacancy rate dropped to a five-year low of 5.3 percent. 

“Greeley is one of those places where brand-new buildings in the process of lease-up have increased the vacancy rate, with Greeley's rate rising to 4.4 percent, McMaken said. "But if we ignore the brand-new buildings in our calculations, we find a vacancy rate of only 0.7 percent in Greeley overall which shows that there's still a very tight market there."

Vacancy rates in all metropolitan areas measured for the first quarter of 2014 were Colorado Springs; 6.7 percent, Ft. Collins/Loveland, 1.7 percent; Grand Junction, 5.3 percent; Greeley, 4.4 percent; Pueblo, 8.1 percent. The vacancy rate in metro Denver, measured last month in a separate survey, was 5.1 percent. 


A vacancy rate of 5 percent or below suggests a tight market. The statewide composite vacancy rate and average rent includes metro Denver.

Friday, June 6, 2014

April foreclosure filings fall for 18th month in a row

The April foreclosure data for Colorado's 12 metropolitan counties is now available. Foreclosure filings and foreclosure auction sales were near an eight-year low during April 2014, with foreclosure filings dropping 29 percent, year over year, from April 2013 to April 2014. Foreclosure auction sales, over the same period, dropped 38.9 percent in all metros combined. 

The first graph shows  filings and sales for each month since 2007.  There were 876 foreclosure filings and 470 foreclosure sales during April: 


A six-month moving average gives us a clearer look at the overall trend. Not surprisingly, the trend has been generally downward for some time, but has flattened out in recent months:



The third graph shows the foreclosure filings total for each month.  We see that April's total was the lowest total ever recorded in April since the survey was begun in 2007, and is thus an 8-year low for April. 


The next graph shows the foreclosure auction sales totals for each month. We see here that April's total of 470 is still slightly above 2008's April total when a change in the foreclosure process forced a very small number of completed foreclosures.  



Both foreclosure filings and sales are down year over year in April, which means that both filings and sales have been down YOY every month for the past 18 months.



Here are charts showing the breakouts by metropolitan counties.

This chart shows foreclosure filings for April 2013 and April 2014.  Total filings were down 29 percent year over year.



This chart shows foreclosure auction sales comparing April 2013 and April 2014. The overall total was down 38.9 percent. 


This graph shows the month over month change in foreclosure filings. From March 2014 to April 2014, total foreclosure filings fell 10.7 percent. 


From March 2014 to April 2014, total foreclosure sales at auction rose 16.3 percent. 


The final graph shows the foreclosure rate, based on total occupied households for each county divided by the number of foreclosure auction sales. April 2013 stats on left, and April 2014 stats on right. The lower the number, the worse the foreclosure rate: 


Wednesday, June 4, 2014

Foreclosure filings continue slide, drop 25 percent in early 2014

New foreclosure filings were down 24.7 percent in Colorado during the first quarter of 2014, compared to the first quarter of 2013. According to a report released Wednesday by the Colorado Division of Housing, there were 3,441 foreclosure filings reported from January through March of 2014, compared to 4,571 during the same period of last year.

Foreclosure auction sales, or completed foreclosures, also fell significantly over the same period, dropping 41.5 percent from 2013’s first-quarter total of 2,935 to this year’s first-quarter total of 1,718.  


Although foreclosure activity was down year-over-year, filings and sales increased from the fourth quarter of 2013 to the first quarter of 2014. Foreclosure filings rose 15.4 percent from 2013's fourth-quarter total of 2,981 to 2014's first-quarter total of 3,441. Foreclosure sales rose 4.1 percent from 1,650 to 1,718 over the same period.

“Foreclosures have been rising from late 2013's very-low totals," said Ryan McMaken, economist for the Colorado Division of Housing. “But the increases are rather small and foreclosure totals remain near ten-year lows."

Of the state’s twelve metropolitan counties, only El Paso County reported a year-over-year increase in foreclosure filings. Filings increased 6.4 percent from the first quarter of 2013 to the first quarter of 2014, rising from 549 to 584.  The counties with the largest declines in foreclosure filings were Boulder County and Broomfield County with drops of 32.3  percent and 61.0 percent, respectively.


When adjusted for population size, the counties with the highest foreclosure rates during the first quarter were all found outside the Front Range, and Mesa County was the only metropolitan county in the top ten. The top five counties for the proportion of homes that were in foreclosure during the first quarter were Bent, San Juan, Teller, Las Animas, and Mesa.


Foreclosure sales are opened foreclosures that have proceeded through the full foreclosure process to final sale at public auction. Filings denote the beginning of the foreclosure process, and once a foreclosure is filed, the borrower has at least 110-120 days to work with the lender to avoid a completed foreclosure. It is during this period that borrowers work with lenders and housing counselors to work out loan modifications, short sales, or other ways of withdrawing the foreclosure. 

Tuesday, June 3, 2014

First Quarter 2014 Foreclosure Report for All Counties

First Quarter 2014 Foreclosure Report for All Counties