Metro Denver’s labor market numbers fared better far than state and national trends in May as the region’s employers added more than 12,000 jobs. The increase was roughly consistent with seasonal norms, while gains at the state and national levels represented some of the weakest hiring for the month of May in years.

A recent Moody’s Economy.com and MSNBC forecast named Colorado among five states most likely to recover first. Economists expect the states – Colorado, Texas, Washington, Oregon, and Idaho – could report growth by year’s end thanks to milder housing downturns, strong energy and technology sectors, and relatively stable household credit.

Nationally, a 2.4 percent increase in May existing home sales represented the first consecutive monthly sales gain since September 2005, according to the National Association of Realtors (NAR). The May sales gain was smaller than expected, however, and total May sales were 3.6 percent below sales from May 2008.

Metro Denver existing home sales increased seven percent between April and May, but sales remained more than 20 percent below 2008 levels.  Public trustees say foreclosure filings declined between April and May in each of the region’s seven counties. Building permit activity rebounded in April after a weak showing in March, but the total count of April permits was less than half of the total from April 2008.

Workforce indicators, improvements in the stock market, consumer confidence, and home sales were among several economic indicators to move in a positive direction this month, according to data compiled by the Metro Denver Economic Development Corporation in its Monthly Economic Summary for June 2009.

Metro Denver’s unemployment rate averaged 7.6 percent through the first four months of the year in what is almost a three percentage-point increase from the average for the same months in 2008. Still, Metro Denver’s year-to-date unemployment rate in April was considerably below the nationwide rate (8.8 percent) and only slightly higher than the statewide rate (7.5 percent).

April foreclosure filings in Metro Denver rose from March as all but two of the seven counties reported increased foreclosure activity. Despite the increase, foreclosures have declined on a year-to-date basis in each Metro Denver county except Boulder County and the City and County of Broomfield. Foreclosures for the region as a whole have fallen 14.2 percent year-to-date.

Additionally, Denver is the No. one U.S. city most clearly ready for a housing rebound, according to a real estate correspondent for the NBC “Today” show. According to the correspondent, “rebound-ready” cities have high rates of job and population growth, high rates of educational attainment, and a good balance between housing supply and demand. She also noted that Denver has an improving foreclosure rate, an expansive park system, and a thriving downtown.

Data from the National Association of Realtors® show the first quarter U.S. median home price of $169,000 was down 13.8 percent from the first quarter of 2008. The Denver-Aurora median of $192,900 declined by a similar 13.7 percent over-the-year.

The Federal Trade Commission also advises homeowners to be aware of the following scams:

The foreclosure prevention specialist:

Alternatives to Foreclosure

With the current housing crisis affecting more and more homeowners, many borrowers having trouble making payments may be surprised to know there are other alternatives to foreclosure.

The Federal Trade Commission outlines the following alternatives to foreclosure, depending on a homeowner’s financial situation and existing type of loan:

Reinstatement:
The borrower pays the lender the entire past due amount, plus late fees and penalties, by An agreed-upon date. Works best for: Solvent borrowers whose payment problems are temporary.

Repayment Plan:
The lender gives the borrower a fixed amount of time to repay past-due payments by adding a portion of them to the regular payment. Works best for: Solvent borrowers who have missed a small number of payments.

Forbearance:
Mortgage payments are reduced or suspended for an agreed-upon period of time. At the end of that time, the borrower resumes regular payments plus a lump sum or additional partial payments for a number of months to bring the loan current. Works best for: Solvent borrowers who are facing a temporary income reduction (for example, are on disability but will resume full time work shortly).

Loan Modification:
The borrower and lender agree to permanently change one or more terms of the mortgage contract to make payments more manageable. Modifications may include reducing the interest rate, extending the term of the loan, or adding missed payments into the loan amount. Some lenders may forgive or cancel a portion of the debt. Under the Mortgage Forgiveness Debt Relief Act of 2007, the forgiven debt may be excluded from income when calculating federal taxes owed, but it still must be reported on the federal tax return.  Works best for: Solvent or insolvent borrowers who are facing long-term income reduction or increased ARM payments.

Sale:
The homeowner sells the property and pays the lender the full amount due on the note. Some lenders may postpone foreclosure proceedings if there is a pending sales contract or if a borrower lets them know they are putting the home on the market. Works best for: Solvent borrowers whose homes are worth as much as loan balance plus any expenses related to selling the home (real estate agent fees, for example).

Short Sale:
The lender allows the property securing a mortgage or deed of trust to be sold for less than the existing loan balance. A short sale is really a form of pre-foreclosure and occurs when the lien holder agrees to accept less than the loan amount to avoid the foreclosure process. Works best for: Insolvent borrowers and those whose homes are worth less than the amount of the mortgage.

Deed-in-Lieu:
With the lender’s agreement, the homeowner voluntarily transfers property title to the lender in exchange for cancellation of the remainder of debt. Although the homeowner loses his home and his equity, a deed-in-lieu is less damaging to the borrower’s credit than a foreclosure. Works best for: Borrowers whose loan amount is equal to or greater than what the home would sell for.

Bankruptcy:
Personal bankruptcy is generally considered a last resort because the consequences are far-reaching and long-lasting. A bankruptcy stays on a credit report for 10 years, making it difficult to get credit, buy another home, purchase life insurance, or even get a job. Still, for some, this legal procedure offers a fresh start to someone who cannot repay their debts. If a homeowner has regular income, a Chapter 13 bankruptcy may allow them to keep their property. Works best for: Insolvent borrowers who cannot pay their debts.

FHA and VA alternatives
Homeowners with an FHA or VA mortgages may have other foreclosure alternatives. Contact FHA (www.fha.gov) or VA (www.homeloans.va.gov) to learn more.

While the national housing and retail markets remain volatile, two recent rankings show that the region’s housing and retail markets are outperforming many metro areas.

A recent report by Forbes magazine ranked METRO DENVER REAL ESTATE the nation’s sixth-best housing market. The ranking is based on factors that measure the overall drop in prices, the deceleration (or acceleration) of home price declines, and the amount of equity lost by homeowners.

A study by Madison Marquette shows that METRO DENVER REAL ESTATE is less likely to struggle with “distressed” retail real estate than many other metropolitan areas. The study ranks 63 metro areas based on retail vacancy, the velocity of increases in vacancy, net absorption, the inventory pipeline, and pre-leasing.

METRO DENVER REAL ESTATE ranked 22nd among the 63 areas. The S&P/Case-Shiller 10-City and 20-City composite Home Price Indices ended 2008 with record annual declines of 19.2 percent and 18.5 percent, respectively.

The DENVER REAL ESTATE index fell in December, but it ended the year with the smallest annual loss (-4 percent) among the 20 cities. Metro Denver jurisdictions issued roughly 9,400 building permits in 2008, down 36 percent from approximately 14,700 permits issued in 2007.

METRO DENVER REAL ESTATE foreclosure trends are also improving, and the foreclosure indicator was one of two to move in both a positive monthly and annual direction in this report. Overall, four of 18 economic indicators moved in a positive monthly direction, compared to three indicators in the prior report.

Consistent with the prior four reports, four indicators moved in a positive annual direction. In Metro Denver, January foreclosure filings declined 25.7 percent from the prior year. The count of filings fell between December and January in each Metro Denver county except Adams County and the City and County of Denver.