Bank Foreclosures for Sale Up in Resort Areas

by Donald Hanz on General

The real estate markets in Colorado and Wyoming are in a slump. Industry experts said that many offers to buy have been made on existing properties and bank foreclosures for sale but most of them are 40 percent less than the discounted prices.

In Park City, industry analysts are expecting sales volume that are less than 50 percent of figures posted three years ago. A panel discussion on the state of the real estate market in Vail Valley showed that there are areas that are stirring from a sales slump but the overall market is still reeling from the impact of the financial collapse and the economic crisis.

In Telluride, industry analysts said that there are many stalled transactions. Many sellers are willing to trim off as much as 20 percent from their sale price but buyers want properties that are 40 percent less from their original sale price.

The resort areas have been experiencing a jump in the number of foreclosure properties for several years now. However, only a few properties that received foreclosure filings were auctioned off. In Eagle County, there were 236 foreclosures in the first half of this year, while Park City posted 191 for the same period.

According to industry analysts, Telluride’s area listings have eight short sales, properties sold at reduced prices to satisfy lenders. Meanwhile, there were more short sales in Park City this year compared with previous years. Experts said that there is always a daily increase in mountain resort areas, adding that so far, there are about 3,500 listings and about 10 percent of these are short sales.

From January to June, Colorado posted foreclosure filings on 26,565 properties, earning it the 10th position in states across the country with highest foreclosure rates. This means that one in 34 housing units or 1.25 received at least one foreclosure filing.

On the other hand, Wyoming ranked 44th in states with the highest foreclosure rates for the first half of this year. For the period, foreclosure filings were made on 413 properties, representing one out of 587 housing units or 0.17 receiving filings of foreclosures.

State industry experts said that preventing the increase in the number of foreclosed houses is a critical component towards the goal of stabilizing the real estate market.