Hot foreclosure markets have come and gone over the past seven years but one thing seems to stay the same. The markets with the most and the cheapest foreclosures are still located in Florida.
A judicial state that has had its share of controversy over robo-signing practices as well as high levels of negative equity and deep declines in home values since 2006, Florida markets still offer investors the best opportunities to buy and profit by either flipping or renting and holding renovated foreclosures.
To select the best places to buy foreclosures in 2013, RealtyTrac scored all metro areas with a population of 500,000 or more by summing up four numbers: months’ supply of foreclosure inventory, percentage of foreclosure sales, foreclosure discount, and percentage increase in foreclosure activity in 2012.
Topping the list of best places to buy foreclosures in 2013 was the Palm Bay-Melbourne-Titusville metro area in Florida with a total score of 394: 34 months’ supply of inventory, foreclosure sales representing 24 percent of all sales, average foreclosure discount of 28 percent, and a 308 percent increase in foreclosure activity in 2012 compared to 2011.
Five other Florida cities ranked among the Top 20 best places to buy foreclosures: Lakeland, Tampa, Jacksonville, Orlando, and Miami.
Late last year, Zillow calculated that the foreclosure discounts in Palm Beach, Broward and Miami-Dade counties shrank to 2.9 percent discount in September, down from 6.8 percent a year earlier Accordiong to Zillow, South Florida’s peak foreclosure discount was 22.7 percent in August 2008. But during the past year, a lack of homes for sale has frustrated buyers and led to multiple offers and bidding wars.