Colorado Mortgage Borrowers in Control in Aurora
It’s a buyer’s market in Aurora as foreclosures in 2007 are outpacing the number of residents who lost their homes in 2006, local Colorado real estate experts say.
Both Arapahoe and Adams counties are processing more foreclosures than at this time last year. But Realtors say the silver lining is more affordable homes for buyers entering the market.
At the end of March 2006, Adams County had 1,094 foreclosures. In the first three months of this year 1,456 homes went into foreclosure, a 33 percent increase.
As of April 24, Arapahoe County had 2,015 foreclosures. At the end of last April, the county had seen 1,545 Colorado mortgage defaults, according to officials.
“There’s a lot of great deals out there for buyers but there’s also a lot of doom and gloom,” real estate agent Sunny Banka told the city’s Code Enforcement committee April 20 during a real estate market report.
Rather than walk away from a sale with a profit, home sellers are bringing their checkbooks to closings, said Banka, who has worked in the Aurora real estate market for 29 years. The rash of foreclosures has also driven Colorado home prices down significantly, bringing more buyers into the market.
Homes sold this year in northwest Aurora had an average price tag of $111,250, down $19,000 from last year, according to Banka’s data. Houses in southeast Aurora bucked the trend, selling for an average of $313,153 in 2006 and $396,443 this year, although well below the average asking price of $430,806, according to the same data.
In mid-April, the price range with the most homes for sale was $100,000 to $200,000 with 1132 residential properties on the Aurora market. Eighty-four homes were available for $100,000 or less and 25 homes were available in the $700,000 to $800,000 price range.
Arapahoe County Commissioner Frank Weddig said he expects the foreclosures to continue as more homeowners who financed their purchases with teaser home mortgage rates see their monthly payments increase beyond their ability to stay solvent.
Councilwoman Debbie Wallace called Banka’s report an “eye opener.”
Councilman Bob Broom said lower prices could lead to lower property values and property taxes, and any slump in home building also hurts the city coffers because developers aren’t paying permitting fees.
“New construction is in serious trouble,” Banka said, adding that she’s recently seen large home building companies lay off staff and close up offices in the area.
Nancy Sheffield said the city’s Home Ownership Assistance Program has been inundated with calls from residents trying to save their homes from going into foreclosure.
Broom called the report, which required no action from the committee, “gloomy” and despite her enthusiasm for the up tick in home sales, Banka agreed, saying: “I think we’re in for another tough year.”
SOURCE: The Aurora Sentinel