With nationwide foreclosures on the rise, many investors are looking to pick up properties for less than market value. A recent NuWire poll showed investors consider foreclosed properties a greater opportunity than any other type of alternative investment. But investors need to study before committing to buying a foreclosed property just because it’s a great deal.
Many markets are shrinking in both job and population growth. (See Top 5 Declining Markets for more information.) While buying a foreclosed home could be an excellent investment, investors need to make sure they buy into a market that will continue to see demand for houses and rental properties.
After examining statistics for 99 major cities with populations of more than 200,000 people, NuWire selected the top 10 foreclosure investment markets for 2007. The selections were based on population and job growth, rental and homeowner vacancy rates, median home value and costs versus median income, along with the percentage change in median home price from 2006 to 2007.
All housing data were compiled from the U.S. Census Bureau’s 2006 American Community Survey, except where otherwise noted. All jobs data were compiled from Bureau of Labor Statistics State and Area Employment, Hours, and Earnings figures, which are not seasonally adjusted, and which are based on statistics from 2000 to 2006. All foreclosure data are courtesy of RealtyTrac and date from January to June 2007. Figures concerning the increase in median home prices between the second quarter of 2006 and the second quarter of 2007 were gathered from National Association of Realtors data on the Median Sales Price of Existing Single-Family Homes for Metropolitan Areas.
The Top 10 Foreclosure Markets are:
|1.||Forth Worth, Texas|
|2.||San Antonio, Texas|
|4.||Charlotte, North Carolina|