So where are the best real estate investing markets? Actually, there are bargains in every market that can sustain a wholesale business even during the top of the housing cycle. Remember the good old days when the main strategies in looking for bargains were to find probate, divorce and bankruptcy leads, and to market to those with little equity? Those forms of distress will always be a part of every market.
In 2011 there were declines in home value in all but one major market tracked by the S&P Case Shiller Index in October 2011, the most recently reported month. Overall, experts expect the decline in home value during 2011 to be more than a 5% loss. The persistent decline in home values triggered by high foreclosures and low consumer confidence over the past several years has created even more opportunity for those looking for good bargains.
The cities that Clear Capital has identified as of November 2011 as the top markets for bank-owned property include the following 15 markets:
| Market | Year over Year Change | REO Saturation |
| Las Vegas, NV | -9.6% | 47.1% |
| Detroit, MI | -8.9% | 45.2% |
| Atlanta, GA | -18.9% | 42.8% |
| Riverside, CA | -3.7% | 42.4% |
| Tucson, AZ | -11.6% | 41.4% |
| Memphis, TN | -3.8% | 38.8% |
| Sacramento, CA | -7.5% | 34.7% |
| Dallas-Ft. Worth, TX | 1.6% | 28.7% |
| Los Angeles, CA | -3.3% | 28.0% |
| San Diego, CA | -4.6% | 26.8% |
| New Orleans, LA | -4.0% | 20.8% |
| Seattle-Tacoma, WA | -14.6% | 20.2% |
| Richmond, VA | -6.0% | 17.7% |
| Philadelphia, PA | -4.2% | 9.2% |
| Raleigh, NC | -3.7% | 6.3% |
Particularly the cities with double-digit percentages of bank-owned properties in the marketplace will be fertile ground for investor bargain-hunters as we enter 2012.
Trulia recently identified a list of the ten top bargain housing markets based upon the biggest discounts given in 2011 to non-foreclosure homes. They include:
–Detroit, MI with an average discount on non-foreclosure property of 23% and median price of $69,000.
–Cleveland, OH with average discount of 14% and median price of $57,000.
–Baltimore, MD with average discount of 11% and median price of $115,000.
–Miami, FL with average discount of 11% and median price of $146,000.
–Memphis, TN with average discount of 10% and median price of $82,000.
–Milwaukee, WI with average discount of 10% and median price of $93,000.
–Atlanta, GA with average discount of 10% and median price of $173,000.
–New Orleans, LA with average discount of 10% and median price of $140,000.
–Chicago, IL with an average discount of 9% and median price of $202,000.
–Jacksonville, FL with average discount of 9% and median price of $100,000.
No matter how you define bargain house-shopping there is plenty of opportunity in 2012 all across the country.
The Best Real Estate Investing Markets in 2012? is a post from: REWealthCoach.com, Bob Massey's site for real estate investment news, information, tips, videos and podcasts. Visit today! All material is copyright © 2010 Foundation Publishing, LLC.