Stronger Lure for Prospective Home Buyers

Owning Continues to Become More Affordable Relative to Renting, but Several Obstacles Prevent Many From Biting.

By NICK TIMIRAOS

Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.

Where Housing Is Headed

The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the nation’s largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc. Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4%, are the lowest in six decades.

As a result, monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas, according to data compiled for The Wall Street Journal by Marcus & Millichap, a real-estate brokerage that tracked 27 metro areas. It remains less expensive to rent than to buy in 15 cities. But affordability hasn’t done much to lift the sagging housing sector because many would-be buyers are unwilling to purchase a home or unable to qualify for a mortgage.
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Foreclosures drop in Denver metro area
By Michael Davidson

November 16, 2011 –

DENVER – Foreclosure filings and sales continue to drop in the Denver metro area, including Boulder and Broomfield counties, according to the latest report from the Colorado Division of Housing.

According to the division, 83 foreclosures were initiated in Boulder County last month, a 32 percent decrease from the 122 initiated in October 2010. In Broomfield, 18 foreclosures were started, down nearly 31 percent from the 26 filed in October 2010.

In the seven-county metro region, the number of foreclosures dropped nearly 21 percent on a year-to-year basis.

The number of foreclosure sales in October dropped 19 percent in Boulder County, to 29 from the 36 properties auctioned in October 2010. The number of auctions rose to eight in Broomfield, from six in 2010.

Foreclosure sales dropped 34 percent in the Denver metro area on a year-to-year basis.

The year-to-date numbers show a similar trend. In Boulder County, 815 foreclosures were started through Oct. 31, down 28 percent from the 1,134 started in the first 10 months of 2010. Broomfield has seen a 26 percent decline, with 190 foreclosure proceedings started, down from 256 initiated in the same period in 2010.

The number of foreclosures started in 2011 in the Denver metro area has dropped 30 percent from the same period in 2010. The number of auctions has dropped 24 percent.

“October’s auction sales fell off more than expected, and it’s pretty clear at this point that there’s a well-established downward trend now in place,” said Ryan McMaken, a spokesman with the Colorado Division of Housing. “We’re cautiously optimistic that the trend will continue, but we’re waiting to see how things look after homeowners begin to pay off holiday bills early next year.”

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