The 10 Hottest Cities For Investing In Foreclosed Homes

Boston skyline

Photo: bdthomas via Flickr

Amid signs of a housing recovery, some Americans are considering stepping into the housing market. And foreclosed homes often go at a significant discount to average sales prices.RealtyTrac has identified the 10 best metropolitan areas to buy or invest in a foreclosed home in the second half of 2012.

Prices are going up in these markets right now.

They drew on average foreclosure sales prices data, foreclosure discounts, and the unsold inventory of bank-owned homes (REO inventory).

Note: All metros on the list have an annual increase in foreclosure sales price. They also have average foreclosure discounts of over 15 per cent. And the unsold inventory of bank-owned homes represents a supply of 20 months or less.

San Luis Obispo, California

Sales price increased 6.00 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$322,812

Foreclosure discount:
23.29 per cent

REO inventory:
7.95 months' supply

Source: RealtyTrac

Providence, Rhode Island

Sales price increased 7.07 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$136,901

Foreclosure discount:
36.42%

REO inventory:
14.63 months' supply

Source: RealtyTrac

Boston, Massachusetts

Sales price increased 7.13 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$204,702

Foreclosure discount:
44.64%

REO inventory:
17.92 months' supply

Source: RealtyTrac

Phoenix, Arizona

Sales price increased 7.25 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$130,763

Foreclosure discount:
22.48 per cent

REO inventory:
11.10 months' supply

Source: RealtyTrac

Cleveland, Ohio

Sales price increased 9.05 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$69,468

Foreclosure discount:
37.27 per cent

REO inventory:
15.33 months' supply

Source: RealtyTrac

Olympia, Washington

Sales price increased 9.69 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$183,806

Foreclosure discount:
15.82%

REO inventory:
9.20 months' supply

Source: RealtyTrac

Montgomery, Alabama

Sales price increased 10.78 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$95,092

Foreclosure discount:
34.76%

REO inventory:
16.98 months' supply

Source: RealtyTrac

Springfield, Massachusetts

Sales price increased 11.63 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$99,293

Foreclosure discount:
46.46%

REO inventory:
13.92 months' supply

Source: RealtyTrac

Worcester, Massachusetts

Sales price increased 12.76 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$138,911

Foreclosure discount:
38.44%

REO inventory:
13.61 months' supply

Source: RealtyTrac

Durham, North Carolina

Sales price increased 19.44 per cent between Q1 2011 - Q1 2012:

Foreclosure sale price for Q1 2012:
$154,951

Foreclosure discount:
24.68%

REO inventory:
11.28 months supply

Source: RealtyTrac

Now here are the 12 states with the highest negative equity...

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.