Top 10 Foreclosure Cities
With the looming housing market, there are foreclosures popping up everywhere. Some markets have a wider range of foreclosed homes than others, but just about everywhere is feeling the blow. Let’s take a look at the top 10 cities for foreclosure investors based on the poll done by CNBC in 2010, listed in order by median price:
Pittsburgh, Pa.
Foreclosure discount 59%, Foreclosure as a % of resales 10%, Non-foreclosure median price $123,000, Foreclosure median price $35,000
Cincinnati, Ohio
Foreclosure discount 39%, Foreclosure as a % of resales 15%, Non-foreclosure median price $141,000, Foreclosure median price $65,000
Columbus, Ohio
Foreclosure discount 38%, Foreclosure as a % of resales 19%, Non-foreclosure median price $158,000, Foreclosure median price $71,000
Kansas City, Mo.
Foreclosure Discount 25%, Foreclosure as a % of resales 29%, Non-foreclosure Median Price $142,048, Foreclosure Median Price $97,152
Phoenix, Ariz.
Foreclosure discount 29%, Foreclosure as a % of resales 58%, Non-foreclosure median price $168,000, Foreclosure median price $100,000
Minneapolis-St Paul, Minn.
Foreclosure discount 34%, Foreclosure as a % of resales 26%, Non-foreclosure median price $210,000, Foreclosure median price $114,300
Denver, Colo.
Foreclosure discount 27%, Foreclosure as a % of resales 25%, Non-foreclosure median price $225,000, Foreclosure median price $135,000
Riverside, Calif.
Foreclosure discount 25%, Foreclosure as a % of resales 66%, Non-foreclosure median price $205,000, Foreclosure median price $140,000
San Francisco, Calif.
Foreclosure discount 24%, Foreclosure as a % of resales 39%, Non-foreclosure median price $530,000, Foreclosure median price $230,000
Los Angeles, Calif.
Foreclosure discount 27%, Foreclosure as a % of resales 39%, Non-foreclosure median price $435,000, Foreclosure median price $232,000
One of the interesting things about this list is the fact that California represents almost a third of the foreclosure market in the United States while Ohio takes a fifth of the market. Now, these results are based on the discount at the time of sale. It is also striking to note that of the top ten cities, the one with the biggest percentage of resale was not the city with the largest percent discount, but instead the markets which were usually known for their outrageous house prices.
In an investing strategy, this makes good sense, but it seems like a person who is buying for the long term, say five to ten years, will get much more out of the investment than a foreclosure investor who is just rehabbing the house in order to make a quick profit. With the lower discount percent, there is less room for play when it comes to upgrades and time on the market. On the flip side, with the bigger discount, there is more room to play around with possible upgrades.
Either way, many of the top metropolitan cities are on the list with areas like Miami, Atlanta and even Washington DC coming in under the top 25 cities hardest hit by the foreclosure wave. While this is difficult news for homeowners, foreclosure investors are taking full advantage of the prime buying time.
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