Top 10 Cities to Buy Foreclosures - Redding Mortgage News

By: Esther Cho

With foreclosure starts up in the second quarter of 2012, RealtyTrac listed the top 10 metros to buy or invest in foreclosures for the remainder of 2012.

Overall, 132 out of 212 metropolitan areas with a population of 200,000 or more posted increases in foreclosure starts from the previous quarter, according to RealtyTrac. The bump in starts marks a 60 percent gain and means more foreclosure inventory for those markets.

RealtyTrac’s list includes metros where the average foreclosure sales price is increasing on an annual basis, average foreclosure sale discounts are still 15 percent or higher, and the unsold inventory of REOs represents a supply of 20 months or fewer.

Top 10 Places to Buy Foreclosures (FC)

1. Durham, North Carolina
Increase in FC starts from Q1 2012 – 62%
Ave. FC sales price – $154,951
FC discount in Q1 2012 – 25%
FC sales price increase from Q1 2011 – 19%

2. Springfield, Massachusetts
Increase in FC starts from Q1 2012 – 60%
Ave. FC sales price – $99,293
FC discount in Q1 2012 – 47%
FC sales price increase from Q1 2011 – 12%

3. Olympia, Washington
Increase in FC starts from Q1 2012 – 59%
Ave. FC sales price – $183,806
FC discount in Q1 2012 – 16%
FC sales price increase from Q1 2011 – 10%

4. Boston, Massachusetts
Increase in FC starts from Q1 2012 – 52%
Ave. FC sales price – $204,702
FC discount in Q1 2012 – 45%
FC sales price increase from Q1 2011 – 7%

5. Providence, Rhode Island
Increase in FC starts from Q1 2012 – 43%
Ave. FC sales price – $136,901
FC discount in Q1 2012 – 36%
FC sales price increase from Q1 2011 – 7%

6. Worcester, Massachusetts
Increase in FC starts from Q1 2012 – 39%
Ave. FC sales price – $138,911
FC discount in Q1 2012 – 38%
FC sales price increase from Q1 2011 – 13%

7. Montgomery, Alabama
Increase in FC starts from Q1 2012 – 37%
Ave. FC sales price – $95,092
FC discount in Q1 2012 – 35%
FC sales price increase from Q1 2011 – 11%

8. Cleveland, Ohio
Increase in FC starts from Q1 2012 – 34%
Ave. FC sales price – $69,468
FC discount in Q1 2012 – 37%
FC sales price increase from Q1 2011 – 9%

9. San Luis Obispo, California
Increase in FC starts from Q1 2012 – 8%
Ave. FC sales price – $322,812
FC discount in Q1 2012 – 23%
FC sales price increase from Q1 2011 – 6%

10. Phoenix, Arizona
Increase in FC starts from Q1 2012 – 8%
Ave. FC sales price – $130,763
FC discount in Q1 2012 – 22%
FC sales price increase from Q1 2011 – 7%