Can Colorado keep dropping in foreclosure auction sales?
Filings fall to lowest level in a decade
Colorado new foreclosure auction sales fell to the lowest level in a decade and were down 41.4% in 2013 from 2012, according to a report from the Colorado Division of Housing.
There were 9,318 foreclosure auction sales, or completed foreclosures, recorded in 2013, a drop from 15,903 during 2012.
In just the fourth quarter, foreclosure auction sales dropped 56.1% from 3,760 in 2012 to 1,650 in the fourth quarter of 2013.
“Colorado appears to be reaching the end of this foreclosure cycle,” said Ryan McMaken, economist for the Colorado Division of Housing. “Foreclosure activity is now well below below the crisis levels of 2007 and 2009."
New foreclosure fillings also decreased in 2013 and fell 46.3% to 15,333, from 28,579 in 2012.
As a whole, foreclosure filings for the fourth quarter alone this year were down 47.6%, dipping to 2,981 from 5,685 a year prior.
“The total number of active mortgage loans in the state has declined in recent years, employment is stable, and home sales activity is up in much of Colorado," McMaken said. "All of those factors helped to push foreclosures down statewide in 2013."
Meanwhile, all of the state’s 12 metropolitan counties report year-over-year drops in the number of foreclosure auction sales from 2012 to 2013, falling the most in Douglas and Denver counties, where they decreased 50.2% and 49.8%, respectively.
But can this trend continue?
“If current economic conditions persist in 2014, the next year will continue to see declines, albeit foreclosures will likely fall more slowly in 2014 than 2013,” the bank stated.
“Economic trends that greatly influence foreclosure activity in Colorado during 2014 will likely originate outside the state. Factors such as the national economy and U.S. monetary policy will affect demand for homes and employment trends within the state,” it continued.