Categorized | Residential

Best and Worst Places to Buy a Foreclosed Home

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Top Foreclosure Cities

A study released by RealtyTrac found that the best area for a great deal on a foreclosure is Florida. Meanwhile, on that same report, Washington D.C. metro area was among the worst places to buy a foreclosure.

RealtyTrac broke it down and used four criteria’s for the list: the month’s supply of foreclosed properties; the percentage of foreclosure sales; the foreclosure discount; and the increase in the percentage of foreclosure activity in 2012

“The challenge of the 2013 market, for many cities, is a lack of foreclosure inventory,” said Daren Blomquist, RealtyTrac’s vice president. “The best places to buy are where a lot of homes will become available.”

For example, in Palm Bay, Florida, people who are in the market of buying a foreclosure, have a huge inventory of foreclosed homes to chose from.

A person who buys a foreclosed home will pay an average of 28% less than in conventional sales, according to RealtyTrac.

Another bad area to find a foreclosure deal is McAllen, Texas. The inventory of foreclosed home in that area are limited. According to RealtyTrac, foreclosed homes only made up 7% of all home sales last year. Other markets where it’s tough to find a deal on a foreclosed home include Ogden, Utah, Little Rock, Ark., Las Vegas, and Salt Lake City.

Daren Blomquist, vice president at RealtyTrac says, “It’s worse from the perspective of a buyer coming into that market to buy foreclosures. But from a macro level and from the perspective of homeowners in the market, I think it’s a good thing because there are fewer foreclosures that you are competing against if you go to sell your home and foreclosures are not going to be weighing down on home values as much as they have in the past.”

The worst metro area in the country to buy a foreclosure is McAllen, Texas, followed by cities in the west, including Ogden, Utah; Las Vegas; Salt Lake City; Phoenix; Portland, Ore.; San Jose, Calif.; and Honolulu.

The best places to buy foreclosures — where the best deals are to be had — are Palm Bay-Melbourne, Fla.; Rochester, N.Y.; Albany, N.Y.; New York-Northern N.J.-Long Island, N.Y.; and Lakeland, Fla.

Foreclosures in 2012 have decreased from 2010, when foreclosures peaked the most, in 85% of the 212 markets tracked in the report.

“Markets with increasing foreclosure activity in 2012 took the first step in finally purging delayed distress left over from the bursting housing bubble,” said RealtyTrac Vice President Daren Blomquist. “Meanwhile, the underlying fundamentals in many of those markets are slowly improving, making it an opportune time to absorb additional foreclosure inventory this year–and that is particularly good news for buyers and investors hungry for more inventory to purchase in those markets.”

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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