Although listings of distressed properties in Colorado are not as high as in other U.S. states, economists stated that the region will still require a longer time than most to return to pre-crisis conditions. According to them, the economy of the region is much weaker than initially perceived as unemployment levels continue to rise in the state.
Aside from Colorado Springs distressed properties and foreclosed homes in various areas of the state, Colorado is also facing an unemployment rate of over 9%. As of January of this year, the unemployment level of the region is at 9.1%, higher than the national rate, according to data presented by the Colorado Department of Labor and Employment. Economists have stated that Colorado seemed to be going in the opposite direction from the whole country in terms of job market condition.
Around 240,000 people are said to be unemployed in Colorado; a considerable number, given that the state has an estimated labor force of around 2.7 million. With so many people out of job, housing market analysts have stated that there is not much chance that home buying activity will pick up in the state soon, not even among low-priced distressed houses for sale in Colorado. They stated that the home market will likely remain down despite relatively stable average home selling prices.
According to housing market observers, the high unemployment level explains why listings of distressed properties and other residences remain unsold for long periods of time in the state despite a growth in population. They stated that the initial unemployment estimate was 8.9%, which makes it lower than the national average. This, analysts have stated, prompted more people to move to Colorado, with majority of them coming from areas with higher unemployment levels.
However, now that the actual figure has shown an over 9% level of joblessness, the unsold distressed homes and foreclosed commercial properties can be explained. The report from the department revealed that the biggest employment declines were recorded in the hospitality and government sectors, with the former losing 2,300 jobs while the latter eliminated around 2,800 positions. Data also showed that the unemployment level of the state in January was the highest on record since 1976.
With listings of distressed properties and foreclosure numbers expected to increase further this year, economists stated that the economy of Colorado will continue to experience a downturn. According to them, the rest of 2011 will be all about riding the wave and maybe look forward to a better economic condition come 2012.
Listings of Distressed Properties and Unemployment Hit Colorado is a post from: Foreclosure Homes Investing