Foreclosures accounted for just under 30 percent of all Colorado home sales in the first quarter, according to a national report released today.The report by Irvine, Calif.-based RealtyTrac, showed that nationally, 27.5 percent of all home sales in the first three months of the year were foreclosures. There were 4,032 foreclosure sales in Colorado in the first quarter in Colorado, accounting 2.5 percent of the 158,434 nationally.
Compared with the national average, Colorado performed best in the fourth quarter of 2010 to the first quarter. Colorado foreclosures sales fell almost 29 percent in that period, compared with a 16.5 percent drop for the nation. By other metrics, Colorado didn’t fare as well, when compared to the overall U.S. Year-over-year, foreclosures in Colorado were down 20.8 percent, compared with a 35.8 percent drop for the U.S. And the average pre-foreclosure discount in Colorado was 21.3 percent, more than double the 9.5 percent discount for the entire country. The average foreclosure sales price in Colorado was $176,291, compared with $168,321 for the country.
Ryan McMaken, of the Colorado Division of Housing, who analyzes Colorado’s foreclosure activity using a different methodology than RealtyTrac. However, McMaken said that RealtyTrac’s numbers appear to be “plausible.” And he said assuming its data is accurate, “this would tell us that there are a lot of ready buyers for distressed properties.” With the exception of the pre-foreclosure discounts, Colorado price reductions are in the same neighborhood as the national averages, he noted. “The fact that these sorts of discounts can still be had would seem to reinforce recent home price data trends, which indicate continued and persistent downward movement,”McMaken said.
3-year foreclosure supply
Nationally, foreclosure sales are down more than half from their peak first quarter in 2009.
“While foreclosure sales continue to account for an unusually high percentage of all residential home sales, sales volume is well off the peak we saw in the first quarter of 2009, when nearly 350,000 foreclosure properties sold to third parties,” said James J. Saccacio, CEO of RealtyTrac. “While this is probably helping to keep home prices relatively stable, it is also delaying the housing recovery. At the first quarter foreclosure sales pace, it would take exactly three years to clear the current inventory of 1.9 million properties already on the banks’ books, or in foreclosure.”
1st Quarter Foreclosures Foreclosure Sales % change from 4Q % change from 1Q 2010 % of all sales Average foreclosure sale price Average foreclosure discount
U.S. 158,434 -16.5 -35.8 27.5 $168,321 25.66
Colorado 4,032 -28.8 -20.9 30 $176,291 29.5
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