MATT JOYCE Associated Press writer | Posted: Tuesday, November 11, 2008 12:00 am
CHEYENNE - Wyoming had one of the nation's lowest home foreclosure rates for the third quarter of 2008, but the number of foreclosures increased from the same period last year and from earlier this year, according to a recent report.
The analysis by RealtyTrac Inc., which tracks foreclosures nationwide, showed Wyoming to have the nation's 44th lowest foreclosure rate for July through September, with 255 homes at varying stages of foreclosure. That's up 60 percent from this year's second quarter and 141 percent from third quarter 2007.
Wyoming's numbers varied widely with those of surrounding states. Foreclosure rates remained similarly low in Montana and South Dakota, which ranked 46th and 49th, respectively. Colorado and Utah were both hit hard by foreclosures, ranking fifth and 10th in the nation, respectively, while Idaho ranked 16th.
Economic officials say homeowners in parts of Wyoming are feeling limited effects of the national housing and credit problems. But the state has been largely immune from the mortgage crisis because subprime mortgages - those written for borrowers with weak credit - were uncommon here.
"The other factor is that our overall economy is still relatively quite strong," said Wenlin Liu, senior economist with Wyoming's economic analysis division.
"Right now, our employment growth rate is ranked the highest in the nation," Liu said, citing U.S. Bureau of Labor statistics that show nearly 3 percent employment growth from September 2007 to this September.
Liu said construction jobs for commercial and public projects have been the primary driver of the state's job growth, while mining job growth has slowed over the previous two years.
Mike Matthews, regional president of Wells Fargo Bank Wyoming, said foreclosures have been a lesser problem in Wyoming than elsewhere because the state didn't experience a rush of investors buying second homes with the intention of "flipping" them for a quick profit.
"That is pretty rare in Wyoming," he said.
Matthews said Wyoming has been blessed with a strong economy and low unemployment, but he expects to see foreclosure rates increase before they decrease.
"Our economy is still pretty much a one-legged stool, and that leg is the energy business," said Matthews, who is also the first vice president of the Wyoming Bankers' Association. "As (world) economies slow down, so does the demand for energy. And energy is a commodity. The price will drop as demand drops, and long term that will have a bigger impact than anything else."
"Hopefully the recession is not long and not deep," he said.
For the month of September, there were 88 Wyoming homes in foreclosure, or one home out of every 2,718 in the state, according to RealtyTrac. Most of those homes - 61 of them - were in Laramie County.
Liu said that reflects a slump in residential construction, building permits and job growth in Laramie County, which is the state's most populous county.
"Laramie County's economy seems to be slowing down," he said.