Thursday, December 22, 2005

Colorado Defaults Second Only To 80's Bust

The Rocky Mountain News has this wrapup on 2005 foreclosures in Colorado. "More than 14,400 properties in the Denver area are expected to go into foreclosure this year, eclipsing 2004 as the second-worst year ever. This year's tally, estimated at 14,461, about 2,000 more than in 2004, represents the most foreclosures filed in the metro area since 17,122 were recorded in 1988."

"At that time, the metro area was suffering from a loss of jobs from the collapse of the energy business, as well as a change in the tax laws that had fueled overbuilding."

"What happens next year with foreclosures 'all depends on what happens with interest rates and the economy,' economist Tucker Hart Adams said. 'If the economy slows a bit, as I expect, and if mortgage rates continue to move up, which they should, it's not going to be good for foreclosures. That we're having our worst year (in 16 years) with (almost) the lowest rates in 40 or 50 years is not a good sign.'"


At 7:00 AM, Blogger Ben Jones said...

When I first started blogging on housing, Colorado was always in the news. As the situation there worsened, the press stopped covering it. Similar actions have been observed in the UK and Australia. When was the last time you read a headline that Colorado was in a foreclosure crunch?

At 3:54 PM, Blogger Chip said...

True, there is nothing is in the press these days about Colorado. Reminds me, in a way, of the Wilma people who had the misfortune to have been in the final hurricane of the season -- the press has moved on.

If you ever want to become super-cynical about human nature, spend some time around professional press people.

I have a relative who moved from Denver to California a couple of years ago. I think he is eating his old place in Denver. Too bad he doesn't believe in Dutch Auction, as I do. I think it's the only way to sell almost anything.

At 4:05 PM, Blogger SLO renter said...

My friends in Denver still seem quite bullish about housing, home equity loans, and getting back the cost (or more) of any home improvements. I heard some tv news cautions about IO loans when I was there during the summer, but most people living there seem to me to be pretty unaware of what is going on.

At 5:34 PM, Blogger Chip said...

Slo Renter -- the "unaware" part saddens me. I have no sympathy for flippers, who are no different than Vegas gamblers. But people who own a place as their principal residence and subsequently need to sell, those people I feel sorry for.

At 9:40 PM, Blogger John Mc said...

Ben Jones

Thanks for this wonderful blog!

In a nation as large as the USA its important to hear what is going on around the country.

As for Denver & all the rest of us for that matter, please god help us all! I hope we don't get a depression as a result of the fiscal irresponibility of Alan Greenspan.

At 11:36 AM, Blogger MiamiRealtor said...

i will comment this, miami has plenty of foreclosures, what is keeping is afloat is all these people that don't read, but have plenty of money...they keep buying and flipping, sooner or later -pop


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