November Dane County Distressed Property Index sits at 24%

Approximately 24% of the home and home sales in European County are attendant to foreclosure, according to the Distressed Property Index we developed earlier this year. The November finger decreased slightly from the finger level in October.

The November finger decreased because home and home sales have been crescendo at a faster rate than foreclosures. We don't believe this is a start of a long-term trend - and for two reasons. First, the recent rise in home and home sales is due in large part to the home vendee tax credits. Second, some lenders have been implementing foreclosure moratoriums. Both of these are temporary measures. We expect the finger to rest above . 2 for at small the next 6 to 12 months.

Have a good one,

Dan Miller, Realtor, Certified Distressed Property Expert, writer Williams Realty and DaneCountyMarket.com

Dane County foreclosures up 29% in 2010

Dane County foreclosures increased for the 33rd straight month in December. A total of 117 foreclosures were logged in December, an increase of 14% from the 103 foreclosures recorded in December of 2008.

Foreclosures ended the year up 29%. From the graph below you see foreclosures increased for the fifth straight year in 2009.

For our full foreclosure report, you can check out the economic trends page at DaneCountyMarket.com .

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com

Madison foreclosures by zip code, 2000 through 2008

Andy Lewis from the UW Extension and Russ Kashian from UW Whitewater have assembled foreclosure data from the Wisconsin Circuit Court database that shows how foreclosures have grown by location. Here's a look at foreclosures by zip code on both the east and west side of Madison.

Madison East: Foreclosures were up across the board. The 53704 zip code led the east side with 159 foreclosures in 2008.




Madison West: Foreclosures increased in every zip code in 2008, with the exception of 53715. Foreclosures increased by at least 41% in every other west side area. The 53711 zip code led the west side with 86 foreclosures in 2008.

Keep in mind a higher number of foreclosures does not necessarily imply a higher density of foreclosures. The zip codes with the most housing units will tend to have the most foreclosures.

You'll find our full summary of foreclosures by location, including a summary for Dane County communities, on the economic trends page at DaneCountyMarket.com.

Have a good night,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Dane County foreclosure filings up 29% in April

A total of 150 new foreclosures were filed in April, up 29% from the 116 filed in April of 2008.

Year-to-date foreclosures totaled 543, up 24% from last year.


This second graph puts foreclosure growth in perspective. The 543 foreclosures filed through April surpass the total number of foreclosures filed during each of the first 6 years of the decade.

It can take months for a foreclosed home to hit the market. Given this we should expect the number of foreclosed homes on the MLS to continue to rise for the foreseeable future.

For our full foreclosure report, you can check out the economic trends page at DaneCountyMarket.com.

Have a good night,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Dane County foreclosures up in March

Dane County foreclosures increased from 109 in March of 2008 to 127 last month - an increase of 16.5%.

For our full March foreclosure report, check out the economic trends page at DaneCountyMarket.com.

Have a good holiday,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Dane County foreclosures up over 25% in February

Dane County foreclosures increased from 89 in February of 2008 to 112 last month - an increase of 25.8%.

Here's how foreclosures have stacked up over each of the last 6 Februarys:

• February 2004: 31
• February 2005: 27
• February 2006: 62
• February 2007: 67
• February 2008: 89
• February 2009: 112

We've covered how foreclosures have overtaken new construction as a source of housing inventory. Foreclosures continue to increase while housing starts are on the decline. We'll take a closer look at housing starts soon.

For our full February foreclosure report, you can visit the economic trends page at DaneCountyMarket.com.

Have a good day,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Dane County foreclosures mapped - updated for 2008

This map shows Dane County foreclosures by location for 2007 and 2008. Look for the areas shaded in dark green. These are the census tracts where foreclosure density - measured by the number of foreclosures per 100 housing units - is highest.

A couple of patterns jump out from this map:

• Foreclosure density tends to be highest in areas along the perimeter of Madison and outside of Madison. The census tracts along the northern part of the county have the highest foreclosure rates - as do portions of the far east side.
• On the other hand foreclosure densities along the Isthmus and Madison's west side are well below the county average.

Thanks to Russ Kashian from UW Whitewater and Matt Kures from the UW Extension Center for Community and Economic Development published this map.

On a related note, Dane County foreclosures continued to rise in February. We'll publish our February report in the next couple of days. In the meantime you'll find our January foreclosure report on the economic trends page at DaneCountyMarket.com.

Have a good day,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Foreclosures reach a new high in January

Foreclosures increased from 124 in January of 2008 to 154 last month - an increase of 24% and a new monthly high for Dane County.

Here's how foreclosures stack up for each of the last 5 Januarys:

• January 2005: 40
• January 2006: 53
• January 2007: 69
• January 2008: 124
• January 2009: 154

In other words, January 2009 foreclosures were up 385% from the number recorded in January of 2005.

You'll find our full foreclosure report for the month of January on the economic trends page at DaneCountyMarket.com.

Have a good day,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Dane County foreclosure map

This very informative map shows Dane County foreclosures by location during the years 2005 through 2007. Even more useful, it maps foreclosure density (the number of foreclosures per 100 household units). Two things jump out at me when I view this map:

1. As expected, the city of Madison accounts for a large percentage of Dane County foreclosures (each red dot represents a foreclosure).
2. However, foreclosure density tends to be highest along the perimeter of Madison and in a few surrounding communities (look for the census areas that are shaded dark green). This data implies the real estate market will be most affected by foreclosures in the areas that have the highest foreclosure densities.

Thanks to Russ Kashian from UW Whitewater and Matt Kures from the UW Extension Center for Community and Economic Development for publishing this map. They will be publishing a new map soon which will be based on 2008 foreclosure data. We'll share that map when it's available.

On a related note, Dane County foreclosures continue to rise. Foreclosures this month have already surpassed the total from January of 2008. We'll publish our January report in about two weeks. In the meantime, you'll find our December foreclosure report on the economic trends page at DaneCountyMarket.com.

Dane County foreclosures up 41% in December

Dane County foreclosures increased from 73 in December of 2007 to 103 last month, up 41%. A total of 1,312 foreclosures were filed in 2008, up 46% from last year's total of 898.

The graph below shows how Dane County foreclosures have grown each of the past 4 years. The 1,312 foreclosures in 2008 more than tripled the 422 foreclosure filings from 2004.

You'll find our full foreclosure report for the month of December and the 2008 year on the economic trends page at DaneCountyMarket.com.

How much do foreclosures affect neighborhood home values?

I believe it depends a lot on location.

If a foreclosed home enters the market in a neighborhood where demand is high and supply is low, then the impact of that foreclosure on neighborhood home values will be relatively small. When the foreclosure sells, the lasting effects will be minimal because there are no other distressed properties on the market after the sale.

It's a different story on the other end of the spectrum - when a foreclosed home enters the market in an area where several other foreclosures already exist. When supply is high, and much of the inventory comes from distressed sellers, the impact of those foreclosed homes on neighborhood home values will be noticeable and real.

If you're getting ready to price your home, your Realtor can help you gain a better understanding of the foreclosure and short sale inventory in your neighborhood. You'll also find these articles on the DaneCountyMarket.com selling real estate page useful:

• Market value versus assessed value in Madison
• Understanding price trends in your neighborhood
• Pricing your home

Tips for buying foreclosed homes

This recent article by Marv Balousek highlights the trend toward more and more buyers seeking out foreclosed properties. The article does a nice job of summarizing the challenges and opportunities that come with buying a foreclosed home, and offers a few tips.

Foreclosures will continue to be a big news item in the coming year as they continue to rise steadily (foreclosures this month will far exceed the total from December of 2007). So we can certainly expect to see more buying opportunities in the coming year, and along with that a real estate landscape that becomes increasingly complex. Foreclosures and short sales tend to involve more waiting, uncertainty, paperwork, twists and turns than the traditional transaction. As Marv Balousek's article shows, buyers who are willing to work their way through these challenges can reap some nice rewards.

You'll find our November foreclosure report on the economic trends page at DaneCountyMarket.com. Our December report will be available in about two weeks.

Dane County foreclosures increase by 41% in November

November was the second highest month for Dane County foreclosures - even though the November court schedule was abbreviated due to the Thanksgiving holiday. A total of 127 new foreclosures were filed last month, compared to 90 from November of last year.

You'll find our full foreclosure report on the economic trends page at DaneCountyMarket.com.

One source of housing inventory is outpacing another

We know Dane County housing starts are decreasing and foreclosures are increasing, but these trends are especially striking when we can see them together on the same graph.

The graph below shows year-to-date totals (January through October) for housing starts and foreclosures over the last five years. Over this 5 year period housing starts have decreased by 71% while foreclosures have increased by 211%. The end result is foreclosures now outpace housing starts by close to a 2 to 1 margin.

These two trends have changed the real estate experience for everyone - buyers, sellers, agents, attorneys, lenders and builders. Expect more change on the horizon as more and more foreclosed homes work their way through the legal process and onto the open market.

For more information, you'll find these DaneCountyMarket.com updates useful:

• Monthly foreclosure update on the economic trends page
• Monthly housing start report on the real estate trends page

Thanks to Dominic Collar from MTD Marketing Services of Wisconsin for allowing us to share his housing start data. For more information, you can reach Dominic at 920/993-8435.

Foreclosure Alarm

We've covered how you can research the Wisconsin Circuit Court database to identify new foreclosure filings. A web service called Foreclosure Alarm will automate this process for you. Foreclosure Alarm allows you to specify your own search criteria based on county, zip code, metro area and others. When a foreclosure matching your criteria is entered into the circuit court database, you receive an email update.

In addition to sending you email updates, Foreclosure Alarm allows you to log in and run your own searches at your convenience. You can also download the results of your searches into a spreadsheet.

The service offers a free one week trial period, and you don't need to provide your credit card information in order to get started. Thereafter the charge is $29.95 for each month that you use the service. It's worth giving the one week trial period a spin if you have an interest in locating foreclosure properties - since there's no financial downside to signing up.

For more information, visit http://www.foreclosurealarm.com/.

Dane County foreclosures reach a new high in October

Dane County foreclosures reached a new high with 152 new filings in October, up 49% from the 102 foreclosures recorded a year ago. The previous high of 124 foreclosures was recorded in January.

To put this number in perspective, here's how foreclosures stack up for each of the last 5 Octobers:

• October, 2004: 37
• October, 2005: 51
• October, 2006: 73
• October, 2007: 102
• October, 2008: 152

That's a tremendous amount of growth. The 152 foreclosures filed in October are over 4 times the number of foreclosures filed 4 years ago.

For our full foreclosure report, visit the economic trends page at DaneCountyMarket.com.

Another way to locate foreclosure real estate

We've covered different ways to find foreclosure properties in previous posts. Another good way to locate foreclosed homes is to work with a realtor who implements a key word search of the MLS owner field.

For example, your realtor can specify an MLS owner key word search that includes the terms *bank*, *lender*, *corp* and *corporate* to surface properties that are owned by lenders after having gone through the foreclosure process. As soon as a property with an MLS owner matching one of these terms either enters the market or undergoes a price change, you will be notified via email of the new listing or price reduction. From there you can view the online listing to learn more about the property specifics.

Remember, the MLS is a database, so you and your realtor can combine a key word search with other search criteria such as price, age, location, style, size, number of bedrooms, number of bathrooms and a host of other criteria.

If you're targeting foreclosed homes, it's best to cast a wide net and use a variety of search strategies. Each method is likely to surface different properties. The more methods you use, the more likely you are to find the property for you.

Local bank to participate in TARP program?

According to this article by Marv Balousek of the Wisconsin State Journal, Marshall & Illsey Corp. has received preliminary approval to participate in the new Troubled Asset Relief Program (TARP).

On a related note, our preliminary review of the latest foreclosure numbers indicates that Dane County foreclosures will reach a new high during the month of October. We'll have the final numbers in a couple of weeks.

How long does the foreclosure process take?

We took a look at the 107 Dane County foreclosure cases that were closed in the month of September, and here's what we found:

• The average foreclosure case took 4 months to resolve.
• The shortest foreclosure cases took one month to resolve.
• The longest foreclosure case took 19 months to resolve.

If you're concerned about making your mortgage payments, you'll find the Dane County Housing Authority to be a useful resource. The DCHA offers counseling and workshops to help you assess your situation and understand your options. The DCHA also provides a document that explains the foreclosure timeline for homestead property in Wisconsin. You'll find that here.

100 foreclosures, 41 different lenders

One hundred new Dane County foreclosures were filed in the month of September. Here's what we found when we dug a little deeper into the numbers:

• Nine different lenders accounted for 54 of the 100 filings.
• A total of 32 different lenders accounted for the remaining 46.

That's 41 different lenders who filed foreclosure suits in the month of September. It's clear from these numbers that foreclosures are affecting a broad range of lenders.

It's also clear that a minority of the lenders are accounting for a majority of the foreclosures. This graph shows the 9 lenders who filed 4 or more foreclosure lawsuits during September. Note how most of these lenders represent large national or multi-national companies.