Foreclosures in Colorado accounted for 35.9 percent of all sales in the second quarter, compared with 31.3 percent for all sales nationally, according to a report released today by RealtyTrac.
The report by the Irvine, Calif.-based company also showed that some parts of Colorado showed gigantic year-over-year percentage increases in foreclosure, although the numbers are extremely small.
Durango, for example, showed a 500 percent increase in foreclosures in the second quarter from the same period in 2010, yet only had 24 foreclosure sales between April and June of this year.
Grand Junction’s 134 foreclosures were 306 percent higher than a year earlier and foreclosures were up 220 percent in Fort Morgan, where a mere 32 sales were tracked by RealtyTrac in the second quarter.
Of 14 metropolitan statistical areas broken out by RealtyTrac in Colorado, there were 4,272 foreclosure sales. The Denver Aurora area accounted for 60 percent of those, with 2,573 foreclosure sales. In the Denver-Aurora MSA, foreclosure sales were down 4.8 percent on a year-over-year basis, compared to a 10.2 percent drop for the entire nation.
Boulder, with 73 foreclosures, showed the biggest percentage drop, falling 48.6 percent from the second quarter of 2010.
Silverthorne, with only nine foreclosures, had the highest average price of a foreclosed sale at $445,916. The national average was $164,217. In the Denver-Aurora MSA, the average foreclosure price was almost identical to the national average at $164,030 in the second quarter, RealtyTrac reported. The average price in Edwards, in Eagle County, was $368,436 for its 20 foreclosure sales, while it was $230,702 in Boulder.
Statewide the average sales price of all foreclosures in Colorado was $170,317 in the second quarter.
Nationally, foreclosure sales are down from almost 36 percent of all sales in the first quarter, but are up from 24 percent in the second quarter of 2010.
Despite the increase in share of total sales from a year ago, sales of real estate in some stage of foreclosure or bank-owned (REO) properties decreased from a year ago in terms of raw numbers. Third parties purchased a total of 265,087 homes in foreclosure or bank owned nationwide in the second quarter, up 6 percent from a revised first quarter total but still down 11 percent from the second quarter of 2010.
Nationally, the average price of a home in foreclosure or bank-owned was down less than 1 percent the first quarter and down nearly 5 percent from the second quarter of 2010.
“With average prices on distressed real estate trending down and average discounts trending up, this report is clearly good news for well-positioned buyers and investors looking for bargain real estate that will build them wealth in the long term and often cash flow as rental real estate in the short term,” said James Saccacio chief executive officer of RealtyTrac. “Maybe less evident, however, is the good news in this report for distressed homeowners looking to sell, and even lenders saddled with large portfolios of delinquent loans.
“The jump in pre-foreclosure sales volume coupled with bigger discounts on pre-foreclosures and a shorter average time to sell pre-foreclosures all point to a housing market that is starting to focus on more efficiently clearing distressed inventory through more streamlined short sales — at least in some areas,” Saccacio continued. “This gives distressed homeowners who do not qualify for loan modification or refinancing — or who are not interested in those options and want to sell — a better chance of completing a short sale to avoid foreclosure. Streamlined short sales also give lenders the opportunity to more pre-emptively purge non-performing loans from their portfolios and avoid the long, costly and increasingly messy process of foreclosure and the subsequent sale of an REO — which may end up selling for a lower price than it would have as a pre-foreclosure short sale and in the meantime further stresses already overloaded REO departments.”
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