The number of Long Island homes that entered foreclosure last month shot up 26 percent, according to a PropertyShark.com report released today, which trailed another report by the Multiple Listing Service of Long Island showing the median price of homes there plummeted 13 percent in the past year.
Foreclosures can have a devastating effect on property values, dragging down the price of non-distressed sales that struggle to compete with properties on the auction block.
In February, one in every 2,829 homes in Nassau and Suffolk counties were scheduled for foreclosure auction, versus one in every 3,567 homes a month earlier, according to PropertyShark.com.
Hempstead has been hit particularly hard, with the highest rate of foreclosure in Long Island.
“We’re seeing a really high concentration of the properties that are in distress focused in Hempstead,” where one in every 1,541 homes is scheduled for foreclosure action, said Bill Staniford, CEO of PropertyShark. “That’s certainly an area that’s less desirable than other areas in Nassau County, and on a lower scale in terms of socio-economic status.”
The number of new foreclosures lasts month increased 168 percent compared to February 2008 in Nassau County, to 220 from 82, while Suffolk County saw a 5 percent decrease during the same time period, with 104 homes entering foreclosure last month.