The Foreclosure Report

Denver Defaults 'Hammering The Market'

Some reports on on Denver area defailts. "The Denver-are first-quarter vacancy rate fell to 7.4 percent from 9.3 percent a year earlier, marking the fifth consecutive quarter that the vacancy rate has improved. Rising real estate foreclosures, escalating interest rates, an improving economy, and little apartment construction, all bode well for the market, said Gordon Von Stroh, a professor at the University of Denver."

"Jeff Hawks, an apartment broker and principal of Apartment Realty Advisors, said that rising foreclosures, while hammering the housing market, is good news for apartments. 'There are 600 foreclosures a month,' Hawks said. 'And unlike during the downturn in the 1980s, people losing their homes are staying in the area. So almost all of them are going to rent apartments.'"

"The owners of many apartment communities who in the past wouldn't rent to people who lose their homes because they considered them bad credit risks, are now opening their doors to them. 'They realize these are pretty good renters, because there is no chance of them buying a place and moving out of their apartments any time soon,' Hawks said."

"Colorado reported 5,392 foreclosures in March, the highest rate per household of any state."

"Although vacancy rates are dropping, developers aren't rushing to build new apartment communities. 'There has been no rent growth, so it's hard to project rents high enough to justify new construction,' Steven Rahe said."

posted by Ben Jones @ 9:09 AM