Completed foreclosures in Spokane County increased in 2016, following a precipitous decline the previous year. 

The Spokane County Auditor’s Office recorded 778 foreclosures last year, up 9 percent from 714 foreclosures in 2015. 

While the number of defaults climbed last year, following two years of declines, the level of activity remained well below the 982 foreclosures countywide in 2014 and the record 1,211 defaults in 2013. 

Grant Forsyth, chief economist for Spokane-based Avista Corp., says the increase in foreclosures might be the result of some “hangover issues” from the Great Recession and don’t appear to be reflective of a larger economic trend. 

“From a statistical point of view, the difference is relatively small,” Forsyth says. “It’s not easy to explain in the current economy.”

He adds, “If you look at a broad range of indicators, there’s nothing particularly alarming. If you look at other leading indicators, like permitting, the economy is pretty strong.”

Despite the increase in foreclosures last year, the sale of distressed homes declined, according to data from the Spokane Association of Realtors. About 610 homes sales through its Multiple Listing Service were categorized as distressed sales last year, accounting for 8 percent of all transactions through the MLS. That was down from about 890 distressed sales, or 12 percent of all MLS sales, in 2015. 

Also, the increase in foreclosures occurred while home sales increased and home values rose. 

The Realtor association’s year-end sales report says about 7,570 homes sold through the MLS last year, up 10 percent from about 6,890 homes sold in 2015. 

The median price for homes sold through the MLS increased by just over 8 percent, to $195,000 from $179,900.