Grand Junction Blog

Mesa County led Colorado in percentage increase of foreclosure filings through 2009. This of course furthers the historic performance of Mesa County being a lagging indicator of Colorado and national economy. As the only ‘city’ metropolitan area of Colorado, it attracts much attention as an economic indicator for the western slope. Mesa County foreclosure filings made up less than 3 percent of filings in the state in 2009.

The telling statistic is that 359 homes were sold at foreclosure auctions, a 223 percent increase from 2008. Mesa County had 1,290 home foreclosure filings last year, a 175 percent increase from the year before. The Colorado Division of Housing guesses that Mesa County’s delayed entrance into a statewide increase in foreclosures could be partly to blame for the disparity between Grand Junction and Colorado’s other metropolitan areas. The Front Range counties that experienced higher foreclosure rates in 2008 turned a corner in 2009 as Mesa County’s foreclosure filings just started to rise.

Across Colorado, foreclosure sales at auction dropped from 2007 to 2008 and 2008 to 2009. Filings also decreased between 2007 and 2008, but increased between 2008 and 2009.

The Division of Housing noted foreclosures in 2009 were often connected to a loss or lowering of income for home owners, rather than problems with rates and financing. Mesa County has led all other Colorado metropolitan areas in unemployment since this past June.

Attendees at the weekely Mesa County foreclosure auction (like me) have noticed that banks aren’t interested in reducing property prices. Rarely, and only for the most decrepit properties, are deficiency bids allowed. (As in a bid price less than the current mortgage balance, including all the late fees piled on by the banks.) Real estate agents that specialize in liquidating bank-owned properties have noticed the same practice, as well as the highest amount of vacant properies since our local Black Friday in November of 1982.

The linked article (again) takes notice of how long short sales can take because of bank neglect of their responsibility to the economy. Of course, if the distressed homeowner contracts with an investor like mine that can close quickly on a short sale, that negates that problem. Completed foreclosures in Colorado can take about six to nine months.

Read it here

Vail, Colorado has recognized the financial hardship being endured by commercial developers with construction projects that are currently in limbo because of the economic crisis. Three new laws concerning new construction make it even harder for construction projects to stay afloat financially as actual construction sputters.

Many cities and towns in western Colorado are taking steps to ease the potentially sinking financial hardship on various commercial enterprises. All anyone has to do is pass through Vail, Colorado in Interstate 70 to see the industrial cranes are numerous. When one considers that each crane represents a construction project that is spending money instead of generating revenue for the owners and the city, it is fairly easy to recognize that relief was warranted.

Vail approved the four development plans for Cascade Residences, Cornerstone Residences, Strata and Timberline Roost Lodge before not only the economy went south, but also before the town adopted new regulations on a construction tax, a 50 percent on-site employee housing tax and new international building codes. The three new laws would place further financial hardship on the four approved developments. This is why the Vail town council is deciding to give developers extensions.

Developers echo the observation of commercial development across the US. Affordable commercial project financing has dried up and vaporized with the current financing crisis.

The town agreed to grant an 18-month extension to the four projects, giving as much as three years from now to get them going — the extensions are set to begin when the project’s current approvals are set to expire.

Of course there is concern from some Vail council members about setting precedent, but any reasonable politician would understand these are not normal times. Certainly ’setting precedent’ would be avoidable when these economic times pass. Vail Council members agreed that having these projects in the pipeline and ready to go when the market rebounds is the most important thing.

Vail town council voted to bring the matter back as a resolution to approve the extensions at a future meeting. Mayor Dick Cleveland was the only dissenting vote. Wanna guess that Mayor Dick is a rancher? The reader probably has to live in a ranching community to understand why one would guess that.

Read it here

Experts that study US housing data know that there is a significant number of prospective home-buyers sitting on the sidelines waiting for the perfect time to buy a home. The linked article below for the Grand Valley of Colorado indicates that the time is fast approaching. The article indicates that Mesa County, Colorado is a few months behind the rest of the country.

Any smart shopper wants to buy at the very bottom of the price curve. When buying a home, that usually means the lowest interest rates combined with the lowest home prices. All indications are that now is the time to start shopping. When one considers that buying a home is probably at least a three-month process, the statistical observation that Mesa County is an estimated two months behind a national upward curve might easily spur the smart shopper onward.

The homebuyer should know that no one who studies graphs of any kind advises that they will recognize the bottom of any graph/curve. You only know the bottom when it starts going back up. If our local economic curve starts going back up with the improvement in weather in April, the prospective homebuyer will have missed the possible or even probable proverbial absolute graph bottom. This will be the spring and summer of the best property values in our lifetime.

The Federal Reserve has indicated they will keep interest rates near zero for the forseeable future. That solves the cost-of-money part of home-shopping.

There is no indication that property values are going to decline any more in the future. That goes for the nation and the Grand Valley in particular.

Lastly, the prospective homebuyer needs to feel comfortable in their consistent and steady employment. Depending on anyone’s specific career, it appears that locally we aren’t in for any more noticeable decline in jobs. Indications are that more jobs are coming to the Grand Valley, but individuals may need to wait for that indication.

The federal tax incentives are guaranteed until this April. That may fit the rest of the national economy, but is regrettably that same two months behind our local economy. That’s pressure.

Start shopping.

Read it here

Several months ago, Grand Junction city government was proactive in identifying and improving the energy efficiency of it’s city buildings.
This goes along with the overall investigation into ‘greenness’ in the Grand Valley region. City officials acknowledge that this is just a milestone in the ongoing effort to be energy efficient. Investing in future energy cost savings is of course an additional benefit.

Grants paid for most of the $2 million project. The completed projects involved retrofitting lights with timers, sealing cracks, installing high-efficiency boilers, low-flow faucet fixtures, photovoltaic lights, electric water-cooler timers and programmable thermostats.

This project focused on energy-efficiency projects at 18 of its buildings and parks. City Hall, Two Rivers Convention Center, the Visitors Center, Canyon View Park’s maintenance building, Tiara Rado Golf Course’s clubhouse and maintenance building, fire stations 3 through 5, the recycling center, service center, the field engineering lab/office, the facilities office, engineering lab, and transportation engineering building all received energy upgrades.

Grand Junction strives to cut energy consumption by 20 percent by 2012 with the help of this project and others.

Upcoming projects include placing solar panels on the Persigo Wastewater Plant. There are other projects underway, and there are more planned for the future.

Read it here

Colorado Skier visits through Dec. 31 of 2009 are up 1 percent over last season, according to Colorado Ski Country USA. Of course that’s neglible, but it sure ain’t a minus. And of course we have a lot more season left. The snow pack was down at the end of the year, but we’re gaining as I write.

The report said early-season snow allowed some resorts to open early and have plenty of trails available for visitors. Also, the holiday season, particularly New Year’s week, was busier than expected, thanks to an extended storm period in mid-December. Powderhorn Resort is our closest ski facility, and they report about the same, and appreciate the latest snow also.

Aspen Skiing Co. was running about 3 percent ahead of last season, spokesman Jeff Hanle said in a conversation last week with the Aspen Daily News. “We’ve also had a pretty strong January,” Hanle told the newspaper. Ge also said the below avarage snowfall in December didn’t hurt business.

Heavy storms through southern Colorado San Juan mountains will only encourage the enthusiasm. The storm that hit the state last week dropped more than six feet of snow in places and should boost winter skier numbers. Silverton Mountain saw the heaviest snow, recording 81 inches over four days. Nearby Purgatory at Durango Mountain Resort received more than 55 inches, while Wolf Creek reported 48 inches and Telluride 34 inches.

Bring your skiis and your money. Snow’s fine and right here.

Read it here