Foreclosure filings plunged in La Plata County during the first half of 2014, providing a strong indicator that fewer homeowners are in financial distress.
The low number of foreclosures also means it’s becoming more difficult for bargain-hunters to find distressed properties on the cheap.
“It is a positive factor for real estate values,” said Don Ricedorff, a real-estate agent with The Wells Group in Durango.
Not every foreclosure filing proceeds to sale, but the data provides an indicator of economic distress.
La Plata County recorded 39 foreclosure filings during the first six months of the year, according to the Treasurer’s Office. That was down by nearly half from 76 during the same period in 2013.
It was the fewest foreclosure filings for the period since 2007.
Ricedorff said he expects the trend to continue, along with higher median prices.
In-town Durango homes had a median price of $400,000, an increase of 11 percent for the second quarter. La Plata County homes showed a 4.6 percent increase in median price to $329,500, according to the Durango Area Association of Realtors.
“We’re going to see fewer and fewer of those foreclosures as the real estate market gets stronger and stronger,” Ricedorff said.
In a stronger market, homeowners who get in financial trouble are more easily able to sell their homes, avoiding foreclosure, he said.
The highest balance due was $1.49 million on a home at 580 Lake Purgatory Drive. The home is owned by a trust with a registered address in Paradise Valley, Arizona.
cslothower@durangoherald.com
