You’re going to start hearing about foreclosures going up. Here’s what you should know about those headlines.
I just searched and, in our entire MLS, there are 12 foreclosed properties. In the Denver metro area, there are five.
Take the news about foreclosures with a big grain of salt.
Of course, it’s important to keep an eye on national trends. With more foreclosures around the country, can we expect more here, too? It’s a good question.
Foreclosure starts are up, that is true. Research by Attom Data shows that Illinois, Nevada, and New Jersey had the highest foreclosure rates last month. One in every 8,677 housing units in the country had a foreclosure filing in August 2021, up 49% compared to the 5,603 in August 2020.
To put things in perspective, though, we should look at 2019, before the pandemic. During August of that year, there were 28,000 foreclosure starts nationwide. We’re very far from that.
If we look at yearly foreclosures, there were:
So far this year, there have been 19,560.
Last year, there were 161,260 fewer foreclosures than were average in the previous three years. This year, we’re 270,000 below the average from 2017 to 2019.
We’ll keep an eye on foreclosures locally, but we don’t expect a crisis to occur.
The government’s forbearance program helped borrowers who were having trouble paying their mortgage; they could modify their loans or defer loan payments. Some participants in the program were paid their loans in full – they didn’t even really need help.
Other borrowers haven’t used the program as they could have, and some are coming out of forbearance with negative equity or not as much equity in their homes as they could have. We expect most of the people who participated in the forbearance program will be able to avoid foreclosure, though.
While foreclosures will rise – not just around the country but in our area too – it’s important to note that we’re moving back toward the average. We’re not seeing something out of the ordinary or experiencing a foreclosure crisis and we don’t expect a crisis anytime soon. from 2017 to 2019
Metro Denver Real Estate Market Activity
During the last week:
New Listings – 1157
Back On Market – 255
Price Increase – 126
Price Decrease – 799
Pending – 1889
Withdrawn – 134
Closed – 1585
Expired – 204
New Listings – 1417
Back On Market – 262
Price Increase – 150
Price Decrease – 772
Pending – 2012
Withdrawn – 125
Closed – 1744
Expired – 163
— Based on data from REColorado®
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