Foreclosure filings plummeted in La Plata County in 2013 to the lowest level since the real estate bubble popped and the Great Recession began.
Only 128 foreclosures were filed in 2013, a 40 percent decline from the 212 filed the previous year. It was the fewest filings since 2007, according to the county treasurer’s office.
“There are far fewer distressed properties available in today’s local real estate market compared to the recent past,” said Bob Allen, a real estate appraiser and consultant with Allen & Associates in Durango. “This is a healthy change.”
Foreclosure sales also dropped dramatically. There were 73 foreclosed properties sold in 2013, down 42 percent from 126 in 2012.
Not all foreclosure filings proceed to sale. Some are withdrawn as homeowners meet their obligations or as lenders decide not to proceed.
A decline in distressed properties on the market typically stabilizes home values. It also leaves fewer bargains for buyers.
That could lead to unrealistic expectations for some buyers, Allen said. “The tough issue is, I think, people are still thinking they’re going to find those deals.”
A reduction in distressed properties also tends to thin out the inventory on the market, said Julie Cooley, vice president in charge of mortgage banking at First National Bank of Durango.
“Over the last few years, there’s generally more (listings) coming on the market than have sold,” she said. “That’s kind of reversed now, or at least stabilized.”
Tim Quinlan, a Wells Fargo Securities economist, told attendees of the Southwest Business Forum last week that the number of distressed properties on banks’ balance sheets is shrinking.
Cooley said First National has few, if any, distressed properties.
“At this point, we may have some vacant land, and that’s probably all,” she said.
The county’s highest-priced 2013 foreclosure, on a balance of more than $2 million, was Silver Streams at North Shore LLC, a Vallecito development encompassing six tracts at 18645 County Road 501. The properties were purchased at a foreclosure auction for $1.84 million by General Growth LLC of Cape Coral, Fla., county records show.
cslothower@durangoherald.com
