Isle foreclosure rate among lowest in U.S.
The state's low ranking is helped by a strong demand for real estate and price appreciation
STORY SUMMARY »
Experts have said that continued price appreciation and strong demand for Hawaii real estate could have insulated the Aloha State from developing the foreclosure-driving market conditions that many mainland markets are experiencing.
However, foreclosures in Hawaii are increasing, according to a report released yesterday by RealtyTrac. The state's year-over-year rate -- one foreclosure filing for every 925 households -- ranked 43rd highest among all the states.
Hawaii reported 531 foreclosure filings during the first six months of the year -- low when compared to other states. However, foreclosure activity in the islands during the first six months of 2007 increased at a faster pace than the national average.
STAR-BULLETIN
FULL STORY »
Despite a continued run-up in home prices and declining sales volumes, Hawaii ranked near the bottom for foreclosures in a recent national survey which evaluated foreclosure rates for the first six months of the year.
Foreclosures grew substantially during the first six months of the year and from the same period last year as more consumers defaulted on loans and lenders tightened their underwriting standards, according to the latest projections released yesterday by
RealtyTrac, the leading online marketplace for foreclosure properties.
But while Hawaii's foreclosure rate has continued growing along with the nation as a whole, foreclosures still have a limited footprint throughout the islands. Hawaii's rate -- one foreclosure filing for every 925 households -- ranked 43rd highest among all the states.
Experts have said that continued price appreciation and strong demand for Hawaii real estate could have insulated the Aloha State from developing the foreclosure-driving market conditions that many mainland markets are experiencing.
Hawaii reported 531 foreclosure filings during the first six months of the year -- low by many other states. However, the state's foreclosure activity increased at a faster pace than the nation's.
In Hawaii, foreclosure rates grew 56 percent from the previous six months and rose 59 percent from the same period in 2006. Nationally, foreclosures are up 39 percent from the previous six months and up 55 percent year-over-year, according to RealtyTrac.
"Despite a slight drop in June, foreclosure activity shows no sign of slowing down," noted James J. Saccacio, chief executive officer of RealtyTrac. "Based on the rate of foreclosure activity in the first half of 2007, we could easily surpass 2 million foreclosure filings by the end of the year, which would represent a year-over-year increase of over 65 percent."
The report showed a national foreclosure rate of one foreclosure filing for every 134 U.S. households during the month.
Nevada, California and Florida posted the top foreclosure rates in the nation, along with Texas, Ohio and Colorado.
"The bottom line is that no matter how you count -- by individual households or by the total number of foreclosure filings -- foreclosure activity is up significantly in 2007," said Rick Sharga, RealtyTrac's vice president of marketing.
"We hope that by providing both the total amount of foreclosure activity and the number of households involved, we're providing information that legislators, regulators, lenders, homebuyers and sellers can use to make intelligent and informed decisions," he said.
CORRECTIONWednesday, August 1, 2007
» A chart on Page C1 yesterday about Hawaii home foreclosures in the first half of the year included incorrect numbers for the bottom five states. The correct numbers for the five states with the lowest number of foreclosures per household are: 46) Maine, 1,343; 47) Wyoming, 1,437; 48) North Dakota, 1,977; 49) South Dakota, 2,161; and 50) Vermont, 17,075.
|
