Breckenridge Real Estate Blog

The Denver metro area has been hard-hit by foreclosures, but the reality of the situation is vastly different depending on which neighborhood you live in.

While numerous reports tell a bleak story of rising foreclosures and flat house prices, an analysis of data from the Multiple Listing Service shows some neighborhoods are struggling while others are untouched. The analysis drills down to the neighborhood level, giving a detailed look at foreclosures and home values.

The data shows that neighborhoods where the average home price is less than $250,000 are taking the worst beating, while higher-priced communities remain relatively unscathed. Housing values metro-area-wide decreased by 1 percent in the first six months of the year; 25 percent of sales in the region were a result of foreclosures.

During the first half of the year, there were 19,460 foreclosures started in the state versus 28,435 in all of last year, according to a recent report from the Colorado Division of Housing. Still, the data compiled shows that the story is different from neighborhood to neighborhood.

According to DataQuick Information Systems, sales of homes priced at more than $1 million increased 22 percent between January and June compared with the same period last year. But sales declined - in some cases drastically - in nearly every other price range, according to DataQuick.

Stapleton and the surrounding neighborhoods are among the strongest examples of variations in the metro Denver market.

At Stapleton, where the average home price is $449,000, just 2 percent of home sales in the last year were either foreclosures or short sales, and values increased 10 percent. A short sale occurs when a lender agrees to accept less money than is owed on the property.

But the 4,700-acre master- planned Stapleton community is surrounded by neighborhoods where foreclosures are rampant and values are declining, including Montbello, Northeast Park Hill, East Colfax and Northwest Aurora.

In Montbello, where the average price of a house is $148,000, 72 percent of home sales were either foreclosures or short sales. Homes in the neighborhood declined in value by about 9 percent. About 14 percent of its population lives in poverty.

In Northeast Park Hill, 58 percent of houses sold in the last year were distressed. Home values in the neighborhood, where the average sale price is $150,000, declined 11 percent. About 24 percent of its residents live in poverty, according to the 1990 census.

It is still good to buy in a soft market because a soft market is still appreciating.

Because the information we report is based on an analysis from MLS data it’s more useful than information found on websites such as Zillow.com, which is based on public records. Zillow.com doesn’t take into account when renovations have been done or additions have been made. Public records are old news. It really doesn’t adjust for current trends in the neighborhoods.