In Colorado foreclosure filings have been on the decline dropping almost 30% from this time last year. Specifically, the Colorado Division of Housing reported 7,233 “NEDs” or foreclosure filings and 5,333 sales at the foreclosure auction ending Q2 2011. Sales at auction are homes that have been repossessed by the lender. In most cases a lender will take back a home in default, or a 3rd party will purchase it as the highest bidder. These numbers are the states second lowest quarterly report since 2007.

In the national picture foreclosure statistics also dropped to a 44 month low, despite the number of distressed properties in the United States. This is according to RealtyTrac. Most real estate professionals and industry experts are seeing the banks slow down the state regulated foreclosure process to consider all alternatives before repossessing a home. Local HUD approved foreclosure avoidance counselors are also confirming a decline in foreclosure filings, but this hasn’t stopped the number of phone calls the Colorado Foreclosure Hotline receives each month from distressed homeowners.

The biggest concern right now would be the unemployment rate and the hard times Colorado Homeowner are experiencing. Those who are unable to find work could cause the Denver Metro foreclosure statistics to spike back to levels seen in 2009 and 2010. Despite these concerns the Q2 2011 housing report showed a decrease in foreclosure filings of 10.9% and a decrease in the number of foreclosed homes by 4.8% as compared to Q1 2011.

Over the past 12-24 months the banks seem to be slowing down the foreclosure process. This has been very beneficial for Homeowners looking for a bank workout or a loan modification to avoid foreclosure. However, some believe this is simply prolonging the housing recovery and opening the door for those who want to game the system.

Colorado’s highest foreclosure filings occurred in Q3 2009 with a total of 42,692 NEDs being filed. Today’s filings stand 42% below that peak, which is a positive for the Denver real estate market. However, this recovery is very localized and shouldn’t apply to all of the Denver Metro Area.

Certain subareas in Denver have a high number of foreclosed homes for sale and shadow inventory lurking. For example, the number of bank owned homes for sale on the Denver MLS for Aurora 80015 and 80016 is much higher than what you would find in Highlands Ranch 80126, 80129, & 80130. In addition to that, Adams County has the highest foreclosure rate among Colorado counties with 1 out of 365 homes currently facing foreclosure. This decrease in foreclosures is welcome by all, but it doesn’t erase the fact that certain subareas in Denver continue to struggle. Click Here to view the Adam County Foreclosure Map as of May 2011.

The Federal Reserve reported solid economic growth in Colorado and six neighboring states in their latest “Beige Book” survey. The May data showed strong activity in the high tech, transportation, and energy sectors. The Federal Reserve report covers the Kansas City based 10th District. There are a total of 12 Federal Reserve Districts, and each reports its own Beige Book Survey every six weeks.

“Residential and commercial real estate activity was generally stable but still slow. Business contacts were mostly optimistic about future sales, and a number of firms reported increased capital spending and hiring plans,” the 10th District Beige Book survey stated.

A quick snapshot of various sectors reported steady loan demand, and better overall loan quality for bankers. Manufacturing activity slowed, but did report a modest growth. The consumer spending in the district continued to be strong as retail sales of apparel and seasonal garden supplies lead the way.

In the national picture, the New York, Philadelphia, Atlanta, and Chicago districts reported sluggish economic growth for the first time in 2011. These districts attributed the slow growth to higher fuel prices and the international Japanese tsunami crisis. The Dallas region reported accelerated growth primarily based on higher energy prices.

The Beige Book data is a survey of key businesses located in each of the 12 districts. This data is very opinion based and does not rely on statistics. The information reported is used by the Federal Reserve to implement national policies that influence the US economy. A summary of the 12 Fed. Districts was also reported this past Weds.

The Denver Business Journal covers the Beige Book Survey every six weeks. They create a quick summary for readers, along with an archive of past reports and trends. For more information about the Denver Real Estate market and current trends please contact The Hightower Team at (303) 325-5020 or email us at info@hightowerteam.com

The S&P/Case-Shiller Home Prices Index was released on May 31st reporting the ninth consecutive month of declining  home prices for the Denver Metro Area. The average price fell 3.8% in the 12 months ending March 2011. Denver fared slightly worse than the 20-city composite for the same period which fell 3.6%.  The monthly report consists of national averages and statistics from 20 major cities throughout the United States. It confirmed a “double dip” in home prices throughout most of the nation.

“This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation. The National Index, the 20-City Composite and 12 MSAs all hit new lows with data reported through March 2011. The National Index fell 4.2% over the first quarter alone, and is down 5.1% compared to its year-ago level. Home prices continue on their downward spiral with no relief in sight.” says David M. Blitzer, Chairman of the Index Committee at S&P Indices.

S&P/Case-Shiller Home Price Download 

Average prices in Denver fell 0.6% between February and March 2011, and down 1.2% between January and February. The year began with a 1.1% drop in home prices from the month of December to January. The string of declining values goes back to July 2010. Prior to that, the Case-Shiller report showed year-over-year increases in the Denver Metro Area from October 2009 until June 2010.

The recent decline in values is all too familiar. Denver experienced 36 straight months of declining home prices going back to September 2006 through October 2009. However, the dynamics of the Denver real estate market in 2011 are very different since the number of foreclosure filings continues to decline throughout the metro area.

As real estate sales picked up during the first three months of the year data suggest a healthier real estate market. However, Zillow released negative information about the Denver real estate market stating many homes are currently underwater.

Zillow reported 34.3% of Denver’s real estate sold for a loss during March, specifically 48% were condos and 30.8% were single family homes. Many fear this will continue since 41% of households are currently underwater in the Denver Metro Area. These numbers are up over 10% compared to the first quarter of 2010. Nationally, 28.4% of single family homes were under water during Q1 2011.

Many know Zillow as an online resource used by both Homeowners and real estate agents. Agents consider Zillow’s “Z-estimate” an automated value and know that the data is not always 100% accurate. Homeowner’s should seek the help of a professional appraiser or skilled real estate agent to determine a home’s value.

March kicked off the 2011 selling season with a bang, and April delivered great news for luxury Homeowners in the Denver area.

Metrolist, Inc. reported a sharp increase in million-dollar-plus home and condo sales for the month of April. Compared to March, Metrolist reported a 55% increase in homes sales and 100% increase in high end condo sales. This Buyer demand was welcomed as the number of $1 million-plus properties for sale totaled 1,263 throughout Denver in the month of April.

What does this mean? In short, this is good news! However, be cautiously optimistic. Colorado’s selling season is showing solid Homebuyer demand in all pricepoints, including Denver’s highest priced homes. Most Realtors are optimistic after such a great start to the selling season. Earlier this year car sales rose 27% in February, compared to February 2010. We hope these are signs of what’s to come for 2011!

The Colorado Division of Housing reported a 27% decrease in foreclosure filings for the first quarter of 2011. This is the lowest number of filings Colorado has experienced since the third quarter of 2008. Recent data suggests the Denver real estate market is showing signs of recovery. However, the recovery has been highly localized with popular areas like Cherry Creek leading the way. For Denver real estate the national economy and unemployment rate will dictate how quickly a full a recovery will occur. Most are very optimistic as foreclosure filings decline, but fear another wave for foreclosures on the way. View the Colorado Division of Housing Report for Q1 2011 here.

Colorado saw 8,115 new foreclosure filings in the first three months of 2011, down 27% from last year. Foreclosure sales at auction totaled 5,606 down 16% for the same time period. Denver County foreclosure filings were down 41%, but continue to report a high foreclosure rate compared to other counties in Colorado.

In January, the Making Home Affordable Modification (HAMP) saw the lowest number of Colorado residents entering the program since its inception. As the debate continues on HAMPs effectiveness, many say it’s too early to scrap the program. Those in favor see the benefit of government intervention and funding. No matter what side of the debate you are on, the goal of the program is to determine the best decision for the Homeowner and Lender. Critics believe HAMP creates false hope, and that Homeowners shouldn’t hang on to the prospect of a HAMP modification if they cannot afford to keep their home. The actual performance statistics for HAMP are posted here and available for download.

Homeowners saved about $5 billion through the HAMP program, with an average savings of $527 per month. For those who qualify, this averaged a 37% decrease in mortgage payments. Homeowners who are declined for HAMP are encouraged to enter into the HAFA Program, also known as Home Affordable Foreclosure Alternatives. HAFA provides options to short sale or deed in lieu with up to $3000 in relocation assistance. Those who participate in HAFA have the opportunity to save money while waiting several months for their home to sell.

Here is a bit of good news we wanted Homeowners to know about. Did you know this could be the beginning of a great year for real estate? However, a good start doesn’t always mean a good finish.

Colorado’s 2011 selling season kicked off with a bang as warmer March weather brought Homebuyers out of in force. Metrolist released sales data showing a 44% increase in existing home sales for March as compared to February. March 2011 reported 3,209 homes sold and 3,571 placed under contract. This is great news since Colorado real estate is seasonal, with sales traditionally increasing in March. Sales peak by summer’s end and August 2011 should tell us the true strength of Denver’s real estate market.

Despite the dramatic increase, March 2011 fell short of last year’s sales numbers. Many analysts believe March produced artificially high sales data since Homebuyers were taking advantage of the $8000 Federal tax credit. The 2010 tax credit affected Colorado’s real estate since home sales dropped sharply in May and throughout the remainder of last year. This year most real estate agents are hoping sales remain strong throughout the summer and into the fall.