Denver Foreclosures for Sale Still Hurting Home Prices

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Denver foreclosures for sale is still hurting the local housing market in Colorado. In August, home prices dropped by 1.44 percent compared with the same month the previous year. The LoanPerformance Home Price Index (HPI), which include distressed property sales such as short sales and foreclosures, has experienced a drop but not that big compared with the national average, according to industry experts.

Nationally, home prices declined by 10.1 percent on a year-to-year basis. HPI covers condominiums, townhouses and single-family homes. Similarly, Denver foreclosures for sale also pulled down July home prices by 2.64 percent compared with the same month last year. June home prices also dropped by 3.21 percent from the same month the previous year.

Excluding distressed property sales, home prices in July dropped by 1.26 percent and 1.68 percent in June. Industry experts predicted that home prices in Denver area will drop further by 2.63 percentage point from August this year through the same month in 2010.

Statewide, the August HPI showed that the average home price declined by 3.44 percent compared with the same month last year. The home prices exclude sales of distressed properties which dropped by 2.83 percent.
Industry experts predicted that Colorado home prices will drop by 1.87 from this year’s August to the same month next year. Excluding distressed properties, prices dropped by 3.07 percent.

Experts said that Colorado is better off compared with other housing markets. In Nevada, home prices dropped by 24.4 percent and 19.5 percent in Arizona. They said that states leading the drop in home prices are also topping the list for highest foreclosure rates.

Nevada continued to post the highest foreclosure rate in the country for the third quarter of this year. One in every 23 homeowners in the state has received at least one foreclosure filing, six times higher than the national average. For the quarter, foreclosure filings were made on 47,925 houses from July to September, representing a 10 percent increase compared with figures the previous quarter and a 59 percent rise from the same period last year.

On the other hand, Arizona has the second highest foreclosure rate for the third quarter, representing one in every 53 houses receiving a foreclosure filing. Other states included in the top 10 states with high foreclosure rates are Idaho, Utah, Florida, Colorado, Georgia, Michigan and Illinois.