The Foreclosure Report

Vacant Homes For Sale A 'Trend' In N Colorado

The Coloradoan reports on a growing trend in that state. "Nearly one-third of the houses listed for sale by Northern Colorado real estate agent Linda Norton are vacant. Many real estate agents in the region have noticed similar trends in their own residential listings in Northern Colorado. New loan options, tough first-time buyer situations, foreclosures, economic conditions, layoffs and the City of Fort Collins' promise to enforce the maximum of three unrelated adults per household are possible causes for increased rates of vacant homes for sale."

"The first wave of additional empty houses for sale came in on the heels of high-tech layoffs several years ago. Families relocated or had to downsize to smaller homes. Vacancies on the market are not always the result of foreclosure like they were years ago. With all of the financing options available today, it is easier than before to move to a new house before the old one has sold, said Norton. 'You can now get money to buy a new house first before you sell your own house,' said Norton."

"Some buyers who recently purchased their first home are having trouble. Their paychecks are not increasing as fast as their escalating, adjustable-rate mortgages. 'Adjustable-rate mortgages are good because they let buyers in who wouldn’t have been able to buy otherwise. They’re especially great for college students who only plan to live here for a few years,' said Norton. 'But those buyers really have to be prepared for the second or third year when their mortgages start increasing about two percent each year.'"

"'If people took out second mortgages, and they have the adjustable rate mortgage, they might have a tough time right now,' said Norton."

"The Larimer County treasurer’s office logged a record 939 foreclosures last year. Foreclosures increased 36 percent from 2001 to 2002, foreclosures increased 20 percent between 2004 and 2005. In comparison, local population increases have been in the 3 to 4 percent range annually. The residential market has seen 4 percent appreciation rates annually."

"Landlords increasingly are putting their rental houses on the market in Northern Colorado. Especially investors who bought into the market the past several years, said Eric Nichols, president of the Fort Collins Board of Realtors. 'But some landlords are getting tired of dealing with rental vacancy rates,' said Nichols. 'Now they’re trying to sell.'"

"Several vacant home 'staging' businesses have grown up to cater to the vacant home trend. Movers temporarily bring furniture and decorations into vacant houses on the market. 'It can be difficult for people to imagine how their furniture will fit in a house with a different layout,' said real estate agent Linda Hopkins, a real estate agent. 'A bare, cold house in the winter can be a bit discouraging.'"

posted by Ben Jones @ 9:25 AM