Which cities are the hot foreclosure markets? For example, in May of 2013, Palm Bay, Florida, the average foreclosure purchase is 28% less than all conventional sales in the area. Courtesy of Realty Trac’s best places to buy a foreclosure list in 2013, out 20 of the largest metro areas in the country, the ones that had the most significant increases in foreclosure activity were Tampa, Miami, Baltimore, Chicago, and New York. In 2012, almost ¼ of all home sales in the nation were through foreclosure, that means only 75% of homes were conventional or short sales.
Other cities that were selected as good buyer markets were Rochester and Albany, NY; and Lakeland, FL. Some of the cities that were areas of large activity started to experience significant declines, like Phoenix, San Francisco, Detroit and San Diego.
Salt Lake City and Ogden, UT; Las Vegas, and Little Rock, AK were among markets that were now nearly impossible to find a good deal on foreclosures. The lack of inventory in those areas is driving rising prices.
However for judicial states like Florida and Illinois, we still have about a 2 year backlog waiting in the wings. Thanks to the enormous scandal of the “Big 5” lenders and the settlements for foreclosure abuse like, robo-signing, foreclosure activity has regained its momentum.