Foreclosure Rates in Hawaii Remain High

Statewide, Hawaii had 706 foreclosures filed in June 2009, which was a decrease from the 816 foreclosures in May, but more than five times the 134 foreclosures filed one year ago. The state of Hawaii currently ranks 19^th worst among states for its June foreclosure rate. This is equivalent to one filing for every 718 homes.  June’s statistics of foreclosures were compiled of 155 default notices, 460 trustee sale notices, and 91 lender repossessions. There were fourteen foreclosure properties sold in June, brining the year to date total to 301. The average sales price of foreclosures in June was $444,343, while the year to date average is $487,010.  The recent high numbers of Hawaii foreclosures may be in part, attributed to mainland banks now concentrating on Hawaii’s inventory after having dealt first with their many mainland foreclosures.

Thus far, statewide, there have been 3,805 foreclosures filed in 2009.  Maui County had 165 foreclosures. This was the worst area in the state, with 1 filing for every 393 properties; down 3.5% from May, but up 511% from June 2008.  Kauai County had 69 foreclosures, which is 1 filing for every 423 properties; down 11.5% from May, but up 360% from June 2008. The Big Island had 176 foreclosures, which is 1 filing for every 441 properties; up 5% from May, and up 935% from June 2008. The city and county of Honolulu had 296 foreclosures, which is 1 for every 1,131 properties; down 26% from May, but up 295% from June 2008.  We may now be seeing a peak in Hawaii’s foreclosure market. If so, then this is an optimal time to look for good buying opportunities.

Here are some key points to consider when buying foreclosed properties. The overall depreciation in Hawaii’s real estate market has increased the number of sales to first-time home buyers, who previously had been priced out of the market. Foreclosure prices are often significantly lower than the original loan on the home because, banks usually price foreclosures to sell quickly, and foreclosure prices don’t reflect any emotional attachments to the home. Foreclosures may be sold “as is” and without some of the traditional disclosure statements, warranties, and other documentation that serve to protect buyers in a conventional home sale. So be thorough with your research and inspect the home carefully to avoid any unanticipated costs.

If you need assistance in your search for a home contact a Hawaii Life Real Estate Agent.

 

*Numbers from RealtyTrac; includes commercial properties (e.g., time shares).