The Longmont FYI reports from Colorado. "Colorado leads the nation in foreclosure rates, and Weld County leads Colorado. Weld housing officials blame the phenomenon mostly on gullible buyers who accept risky home loan packages including adjustable-rate, no-money-down and interest-only mortgages. Whatever the reasons leading to the spike, home values have dropped."

"In the second quarter of 2006, one of every 66 households in the county was in some stage of foreclosure. 'Wages did not keep up with the appreciation of homes,' said Matt Revitte, a housing broker in Greeley. 'So many buyers bought into a multitude of loan products thinking the party wasn’t going to end. But it happened. It always happens.'"

"'They can’t pay it because they haven’t received the promotions or raises they were counting on at work. They can’t sell their house because too many similarly desperate people have also put their houses on the market, and at super-low prices in their rush to unload. 'Now panic starts to set in,' Realtytracs' Rick Sharga said. And with missed mortgage payments, here comes the bank."

"Some say the county is overbuilt and that local governments should issue fewer building permits. Others argue developers wouldn’t still be building unless they believed their homes would sell soon. The market will take care of itself, they say. In any case, Weld County residents need to start buying homes within their means, said Tom Teixeira, director of the Greeley/Weld Housing Authorities."

The Denver Post. "The Colorado and U.S. economies appear to be gliding to a soft landing heading into 2007, although a slowdown in consumer spending could cause them to sputter, economists said Thursday at a gathering of construction-industry workers."

"Cliff Brewis, an economist with McGraw-Hill Construction, said the economy appears stable, although portions of the construction industry are poised for a slowdown. He said the residential market has clearly softened, although 'we don't expect it to fall off the shelf.'"

"Metro-area home prices dropped and the number of sales rose as the peak homebuying season came to a close in August, according to a report released Thursday. 'Everybody who had to be in a home before school started is done,' said Gary Bauer, an independent real-estate consultant in Denver. 'Now comes a cooling-off period.'"

"Bauer attributes the price declines to pressure from new-home builders, who overestimated demand and have had to offer large incentives and price reductions to move their inventory."

"The inventory of unsold homes, which reached a record 31,989 in July, fell about 1 percent to 31,664 in August. Bauer attributed that to unsuccessful sellers pulling their homes off the market with the start of school."