(Or not) Did you read, on September 11th, Realty Trac, a prominent real estate data tracking company, published that, in Colorado, “scheduled” foreclosure auctions are UP 160% from a year ago?! No need to be alarmed though. There is an extenuating reason, and that is that Colorado’s Attorney General began issuing subpoenas, in early 2013, to the two most dominant foreclosure law firms in the state. Let’s just say those law firms regrouped and a backlog is now moving forward. The fact is, “completed” foreclosures are still on the decline, down 55% from a year ago. In practical terms, the upside is that an increased release of distressed properties into our marketplace is quite welcomed, since our inventory so low (down 75% in 3 years!). Realty Trac also reported a few days earlier that national foreclosure activity is down 7% over August 2013, consistent with all other indicators that the housing recovery is alive and well!
A more telling statistic is the change in the ratio of existing inventory to the rate of sales, as illustrated in this graph. The total number of sales over the last 12 months is over 60% of current inventory, translating to only a 7 month supply of homes! The entry level (average sale price and below) is, of course, the hottest segment of the market. Homes in price ranges 1 to 1 1/2 times the average price are experiencing “balance” between supply and demand, while those priced upward of 150% of average, in any area, are still experiencing a Buyer’s market.
Let me know if you need specific information about your home value. How good the market is for selling and/or buying depends on more than just average market performance.
Remax 100, Inc. – Since 1983