Volume of Cheap Houses for Sale Drop As Foreclosure Filings Decline

by on Foreclosures

For home buyers looking for cheap houses for sale, it would be a challenge for this year, considering the drop in Colorado foreclosure filings by at least 4.8 percent during the last quarter of 2010 as compared to 2009. This could be indicative of a housing recovery, although unemployment continues to weigh down on the market.

The inventory of Denver foreclosures for sale could be affected as well, considering that foreclosure filings for the city declined from 11, 282 to 10,736. The said data includes both commercial and residential properties.

The decline in the foreclosed homes for sale in Colorado can be attributed to the likelihood that distressed homeowners are finding solutions to their mortgage problems, so they can avoid foreclosure. In addition, it would seem that lenders are thinking twice before starting foreclosure proceedings.

Still, there are a lot of cheap houses for sale in the market as unemployment continues to be a factor in the housing crisis. People who lose their jobs or received a pay cut are likely to default on their mortgage. If the unemployment rate in the state remains high, the housing market will have a tough time recovering. But if more jobs are available and there is a solid increase in home prices as well as home sales activity, it would be a different and better picture for Denver and the rest of the state.

Meanwhile, the number of Colorado homes in danger of becoming house foreclosures for sale dropped from 46,394 to 42,692, according to data from the housing division. The 2009 filings is actually the highest for the past eight years.

On the other hand, sales involving cheap houses for sale rose by 17 percent last year. In 2010, distressed home sales recorded 23,891 homes, more than 3000 properties compared to 2009, which recorded a number of 20,437.