More good news for the Denver housing market as the number of Colorado Foreclosures dropped by 49.5% over the past year, This decline in Colorado Bank Owned homes is one of the major reasons that housing inventory has been struggling to keep up with demand over the past 9 months. If you are in the market as a buyer for Denver homes, then you know just how much this decline is affecting the market.
From The Denver Business Journal:
Colorado’s foreclosure-filing rate in July dropped 49.5 percent from July 2012 and 10.8 percent from June 2013, according to RealtyTrac’s monthly foreclosure report, released late Wednesday.
Colorado had 1,451 properties with foreclosure filings in July, or one in every 1,515 households, said RealtyTrac, an Irvine, Calif.-based private marketer of foreclosure properties.
The state had the 26th highest foreclosure-filing rate in the nation last month.
This severe drop in foreclosures is hurting investors in a big way. In the past, most investors looking at Denver fix and flip homes would purchase predominately foreclosed and bank owned. These homes tend to have the most potential upside for investors looking to update, repair and resell. With this drop off in Colorado Bank owned homes, the available homes for these types on investors has been slashed in half leaving the same pool of investors looking for homes. A classic case of demand outweighing supply.
Because of the lack of available foreclosures, many of these investors have moved into other types of homes (traditional resale Denver homes, etc) and have put more pressure on homes that typically would have been purchased by the owner occupant market. This is just one of the many factors driving the demand side of the Denver housing market.