Colorado, one of the Rocky Mountain States has more than its fair share of foreclosures. Coming in at #5, Colorado foreclosure listings are twice the national average and range from multi-million dollar mountain homes to lower income multifamily track homes. From the Denver, Colorado Springs, Aurora, Lakewood, Fort Collins, Thornton, Westminster, Arvada, Pueblo, Centennial and Boulder, high desert or Mountain top, Colorado has been ravaged by foreclosures recently.
As the state with a comparatively low tax burden, Colorado has been luring migrants from California which has one of the highest tax burdens in the United States. Colorado has the 4th fastest growing population in the Nation. With 25% of the new residents migrating from California and bringing with them high paying growth jobs which has a positive impact on unemployment enabling Colorado to boast one of the lowest unemployment rates in the country at 8.2% while the state ranks 8th in total land area. Currently Colorado has the 22nd largest population in the US.
Colorado also offers a median income level that is 15% higher than the national average. These are some of the reasons that Colorado has seen a population increase like few other states. The largest majority of these migrants arrive from California and bring with them some of the same negative aspects that effect California that they were trying to escape. Pollution darkens the sky over Denver and has created a brown cloud over the city most of the year. And the increased population has also created an increase in the cost of housing. Some experts predict that if this population explosion continues, Denver will be little different from Los Angeles in a matter of only a few decades.
A full 62% of Coloradans live in Denver County while Boulder County, Larimer County, Mesa County, Pueblo County and Weld County experience population explosions closely resembling Denver relative to their size.
The rapid population growth in a state of relatively low overall population exacerbate the foreclosure rate as new immigrants to Colorado consequently have fewer roots in the area and when home prices plummet these new migrants are quicker to pull up stakes and head back to where their support network is more established. The deeper the home owner is underwater the greater the chances that they vacate their home and the area increasing the number of abandoned homes and thus foreclosures. Colorado has consequently seen a foreclosure rate increase of a staggering 196%.
The values of homes in Colorado are still in the adjusting to the new market conditions and are in the process of resetting from their high of 2007. The decreasing of home values has not hit the bottom according to most experts. Real Estate values in Colorado are forecast to be at their lowest point by the third quarter of 2012. Before the prices are completely corrected and the market has stabilized is the best time to make as many real estate investments as possible. Trying to time the market perfectly will leave the tentative home buyer and investor out of the market sweet spot. The prices of homes in Colorado will continue to be affected by the percentage of and frequency of homes being foreclosed upon.
The housing recovery will likely be at a faster pace then the average state as the same variables that caused Colorado to experience the worst of the market will be the same variables that allow Colorado to come out of the depressed market earlier than most states. Namely high paying jobs and the opportunity to pay less taxes within a diversified economic climate.
The relative joblessness in Colorado has created additional downward pressure on the value of homes. While Colorado does have lower than average unemployment it is still three times higher than it has been over the past two decades and precipitates even more foreclosures as homeowners can not refinance their homes even as their mortgage interest rates adjust upwards. Unemployment among construction workers accounts for 40% of all unemployment across the state of Florida and sees no sign of a complete rebound within the next two to three years.
The higher percentage of foreclosures in Colorado means that the state has a glut of foreclosures and opportunities for those looking at buying a foreclosure. Every price range, every county and city has been hit and will continue to feel the repercussions from the depressed real estate market, but also has a greater upswing relative to the percentage of decreased value and desirability of immigrants from other states to move into Colorado which is higher than other states which indicates that Colorado is poised to experience a faster recovery than average, albeit at lower overall prices than previously seen in years past.
Foreclosure buying opportunities will continue as interest rates adjust on thousands of subprime mortgages that were taken on homes while downward pricing pressure eliminates the possibility of refinancing. Experts agree that this perfect storm of foreclosures will increase over the next several years.
You should be buying foreclosure properties now. Read more about how to buy foreclosures and educate yourself on the communities you are most interested in buying a foreclosure and start shopping here for the foreclosure home that meets your needs. If you are facing a pending foreclosure call a local real estate professional and determine what types of options you have. Your options will depend on your particular situation. Other variables in Colorado include where a home is located, density of that areas population, which can vary widely in Colorado, how much is owed on the home and how much the particular home is worth in today's market. Real Estate markets in Denver County, Boulder County, Larimer County, Mesa County, Pueblo County and Weld County will certainly be among Colorado's most likely to appreciate in the next several years.
Q. What does all this mean to the real estate investor or home buyer looking at foreclosure homes in Colorado?
A. It means that housing prices are at an all time low, rehabilitation costs are also reduced as general contractors see additional competition for the same job.
Q. Does the higher percentage of foreclosures mean that opportunities for an investor to sell a home will be fewer?
A. No, In fact Colorado has been the land of opportunity for all types of real estate with additional possibilities presenting themselves in the recent mortgage crisis. Colorado has historically been the most desirable destination for Californians for both vacationing and relocation. The continued migration of new residents has slowed but it will return as the economy improves. The current Real Estate market in Colorado should result in a greater upside in the near future.
Q. Has the average home in Colorado lost more of its value than in other states?
A. Yes, but this is good news as the Real Estate market proves to more profitable in the years to come and opportunities are more plentiful in today's market. As People are more likely to let their home go to foreclosure and walk away the higher the percentage of lost equity and the more upside down they are on their mortgage. Recent Federal initiatives have also created an environment which has placed the majority of the blame on the banks and removed the financial stigma of being foreclosed on.
Q. Why would Colorado be more affected by the mortgage crisis?
A. With a much higher median household income, a relatively small population compared to land area, Colorado is uniquely positioned to offer great foreclosure real estate opportunities while offering a high return on investment and therefore less risk associated.Search Colorado foreclosure listings.