Such deals helped lift overall sale numbers but kept downward constraints on prices
POSTED: 01:30 a.m. HST, Feb 24, 2011
One of every nine homes sold last year in Hawaii was caught up in foreclosure, according to a report that helps measure the impact distressed residential property is having on the local real estate market.
BY THE NUMBERSFive states with the highest per-
centage of foreclosure sales in relation to all home sales last year:
The report shows the growing impact foreclosures are having on Hawaii's housing market, as they help boost the number of sales but also keep some downward pressure on prices.
Homes in foreclosure sold for an average $380,661 last year, according to the report. RealtyTrac said that was 14 percent less than the average for all nonforeclosure home sales.
The discount, however, is influenced by a variety of factors including the condition, size and location of homes sold, which muddies the comparison between foreclosure and nonforeclosure property values.
RealtyTrac said the discount was 9 percent in 2009. In 2008, when there were only 503 foreclosure sales in Hawaii, the discount was 2 percent.
Nationally, the discount was 28 percent last year, 27 percent in 2009 and 22 percent in 2008.
The pre- and post-foreclosure sales tally for Hawaii was up 11 percent from 1,500 such sales a year earlier, when foreclosure sales represented 8 percent of the market, or one out of every 12.5 home sales.
More struggling homeowners are still managing to sell their property before a lender takes it back, though lender repossessions continue to rise, the report shows.
Of the 1,670 sales, 907 were made by homeowners prior to foreclosure auction. That figure was down 16 percent from 1,074 such sales a year earlier.
There were 763 sales by lenders after repossession at auction. That figure was up 79 percent from 426 such sales a year earlier.
RealtyTrac's report covers 38 sates. The California-based company said it didn't have sufficient data for 12 states.
Among the 38 states, there were 831,574 pre- and post-foreclosure sales last year, a 31 percent decline from the year before. The sales accounted for 26 percent of all sales during the year.
The state with the highest rate of foreclosure sales among all home sales was Nevada, where 57 percent of home sales were foreclosures.
The lowest rate was in Iowa at 5 percent. Hawaii's rate was eighth lowest among the 38 states.