Although U.S. foreclosure activity is past its peak, many local markets are still weighed down with a backlog of unsold foreclosure inventory — representing an opportunity for buyers and investors to land good deals in 2013. The top 20 markets are those with a combination of ample foreclosure supply, deep foreclosure discounts and recent increases in foreclosure activity.
RealtyTrac selected the top 20 metro areas for foreclosure deals in 2013 by looking at four factors affecting availability of foreclosure inventory in 2013 as well as the discounts on foreclosure properties. Starting with all U.S. metropolitan statistical areas with a population of 500,000 or more (102 in all), we narrowed it down to the top 20 by looking at the best performers based on the following metrics:
- Months’ supply of foreclosure inventory
- Percentage of foreclosure sales
- Average discount on foreclosure properties
- Annual percent change in foreclosure activity in 2012
Based on those four criteria, we expect the following metros are most likely to have more foreclosure inventory available for sale in 2013 — and that much of that inventory will be sold at a discount compared to homes not in foreclosure.