Over a Quarter of Real Estate Sales in Mesa County are Foreclosures
by
KREX News Room
by
Cori Coffin
Story Created:
Jan 19, 2012 at 1:52 PM MDT
Story Updated:
Jan 19, 2012 at 10:11 PM MDT
Mesa County - Mesa County reports indicate that real estate sales are on the rise for the first time since 2005, before the housing crisis began.
"...and it's pretty sizable, 22%," said Bob Reece, president of Advanced Title Company in Grand Junction. Reece analyzes Mesa County real estate data and puts together quarterly reports.
That's good news on the surface, but the increase comes from all the low-ticket foreclosed homes in the market.
"...HUD, VA, Fannie Mae, and Freddie Mac," added Reece.
In Mesa County, the number of foreclosure filings jumped from 77 this past September to 179 in December.
And now, the government owns over a quarter of all the homes in our market. Two years ago, foreclosed homes represented just 2.3%. That jumped to 18% last year, and a commanding 27% this year.
"Any time those agencies own too much of the property in a community, it's troublesome, regarding prices," said Reece.
For the home buyer, rates are more affordable than ever.
"Price points are very attractive historically," said Reece.
But for the one in 200 in Mesa County that have lost their home, like Penny Plathe, it's a nightmare. "Pretty much all of 2011 was pretty terrifying," recounted Plathe.
Plathe was unemployed for several months before losing her home.
"I mean, what do you do? But it's been worse for other people," said Plathe.
She's watched several of her friends and neighbors go through the same thing: their seized homes then turned over and sold for a fraction of the value.
These cheap homes also have a heavy side effect. "When the prices are pushed down, then the price in that neighborhood has a new standard. It's a lower standard," said Reece, making it nearly impossible for private homeowners to sell at a decent rate.
Home values have steadily declined in the area. What was once worth almost $230,000 is now going for $150,000, leaving this desert community under water.
"...and a lot of people just give up--they just walk away. They abandon their homes, they leave this Valley, they leave this county, or they leave this state," said Plathe.
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Milton said on Friday, Jan 20 at 8:30 AM
The economy has become increasingly dependent on explosive debt expansion [ Federal government money printing ] rather than on meaningful rises in productivity... An economy that is dependent on constant massive increases in debt is not sustainable...Guess what happens next ?
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