Foreclosures continue to be a big drag on all aspects of the housing market, they represented one in four home sales last year, down from 29 percent in 2009, but up from 23 percent in 2008, according to data released today from RealtyTrac, a company that tracks national housing data. The group says that in Minnesota foreclosures represented only 12.4 percent of all sales, a 34 percent decline from 2009, but a 26 percent increase from 2008.

A couple of things to note: The declines both nationally and in Minnesota aren't a sign that the number of foreclosures has fallen. Quite the contrary. Earlier this year, HousingLink, a Minnesota non-profit, said that the number of homes sold at sheriff's sales statewide was the second-highest on record. And RealtyTrac attributes the declines to robo signing-related delays in the foreclosure process, which could indicate a big increase in distressed inventory in the coming months.

The RealtyTrac numbers seem to indicate that Minnesota is faring much better than the nation. And that is possible, but local data suggests otherwise. The Minneapolis Area Association of Realtors says that of all homes sold through the Regional Multiple Listing Service in the Twin Cities metro area, about 40 percent were distressed sales (that includes short sales). Consistent with the national trends, the number of distressed sales during 2010 declined slightly from 2009.

Here's another interesting stat from the RealtyTrac report: During 2010 foreclosures sold for an average discount of 30 percent less than traditional sales.

Things could be worse. In Nevada 57 percent of all sales last year were foreclosures, down from 67 (yes, 67!) percent in 2009.