Foreclosures dip in June but still set records

Overall, the number of foreclosures filed in Hawaii fell in June, but they remain more than five times what they were a year ago. The state had a total of 706 filings, the bulk of them notices for public auctions, according to California-based RealtyTrac, one filing for every 718 housing units statewide.

Hawaii was ranked 19th in the nation for the number of foreclosure filings in June, according to RealtyTrac. The number of foreclosures here dropped nearly 13.5 percent from May, but was a 427 percent increase from June 2008. At the county level, foreclosure filings were down in June compared to May everywhere except on the Big Island:

• Maui fared the worst, with one filing per 393 housing units, down 3.5 percent from May but up 511 percent over June 2008.
• Kauai had one filing per 423 housing units, which was down 11.5 percent from May but up 360 percent over June 2008.
• The Big Island had one filing per 441 housing units, up 5 percent over May and up 935 percent over June 2008.
• Honolulu had one filing per 1,131 housing units, down 26 percent from May but up 295 percent over June 2008.

Despite the month-to-month drop in the number of foreclosures, some experts predict things will get worse before they get better. Hawaii's market is only just beginning to feel the harsh effects of foreclosure, said Daren Blomquist, marketing communications manager for RealtyTrac. As many as 615 out of Hawaii's total June foreclosure filings have yet to revert to the lender, Blomquist said.

"Hawaii's main increases are in default notices and auction notices, the first and second stages of foreclosure," he said. "That tells us that the full impact of foreclosures hasn't hit the market." Experts say sales of foreclosed houses are likely to depress home prices further as lenders put properties on the market.