Santa Barbara, CA -- August 25, 2016 --
RealtyStore (http://www.realtystore.com), a leading source of foreclosed and distressed property listings nationwide, researched home prices in states comprising the top 10 foreclosure markets and found the list prices of bank owned foreclosures (REOs) running substantially lower than average market prices.
Foreclosure median prices range from 30% to 68% below market. Given current low 30-year FHA mortgage rates, these lower foreclosure prices translate into monthly mortgage payments that are lower by hundreds to well over a thousand dollars per month below market averages, making foreclosed properties among the more affordable housing options in these states.
"States suffering with the most foreclosure activity can offload inventory at very affordable monthly payments to home buyers"
-- Purchasing Power with Foreclosures --
The 10 hardest hit states with the highest foreclosure rates for Q2, 2016 are respectively Delaware, New Jersey, Maryland, Nevada, Florida, Illinois, South Carolina, Connecticut, Ohio and Massachusetts.
In terms of purchasing power, potential buyers of foreclosures in Ohio, South Carolina and Illinois can enjoy the lowest median price points. Ohio leads with the lowest median REO for sale price of just $48,000. South Carolina shows its median REO list price is $79,900, followed by Illinois at $99,900. Nevada shows the highest REO median price at $159,000, though this is a full 30% lower, or $69,000 less, than Nevada’s market median home price of $228,000. The chart below shows the REO median prices per state and how far these prices are below the market median list for each state.
-- Foreclosure Median Price and % Discount vs Market Average --
Ohio, New Jersey and South Carolina median prices offer the largest percentage discount relative to their overall housing market. Ohio’s median REO price is 68% lower than market, New Jersey shows 62% lower and South Carolina median REO list prices track at 58% below the market median. In terms of dollars, Ohio’s median REO price is $101,000 below market, New Jersey is $207,000 lower and South Carolina shows $110,100 lower median price for foreclosure listings. Illinois and Maryland follow, each with over 50% lower prices compared to market averages, with respective median REO list prices of $115,100 and $146,000. The following chart shows how the discounts compare between states.
-- Affordability of Mortgage Payment for Median Foreclosed Home Purchase --
Further breaking down the pricing data into projected mortgages, every state’s foreclosure inventory produces affordable monthly payments on a 30-year fixed FHA insured loan at the current rate of 3.49%. Payments for principle and interest range from a low of $208/month in Ohio up to $688/month in Nevada. Across all states, foreclosure mortgage payments average $508/month, while market average payments ranged considerably higher, from $645/month to $1,441/month. To better appreciate how low the REO monthly payments compare to the market average payment in each state, see the following chart.
In every one of the 10 states hardest hit by foreclosures in Q2 2016, projected mortgage payments on listed foreclosed homes are far more affordable than the market averages. See the attached charts for details.
-- About RealtyStore --
RealtyStore (http://www.realtystore.com), a division of Nations Info Corp, maintains the largest variety of real estate listings and discount property data nationwide. RealtyStore's mission is to empower its customers with the tools, education and analysis required to identify and potentially maximize opportunity with undervalued real estate. Collected from hundreds of public and private sources, RealtyStore's proprietary database includes over 2.5 million listings including traditional re-sale, pre foreclosures, foreclosures, auctions, short sales, lease options, and owner financed listings.
-- Reporting methodology --
REO properties referenced herein have completed the foreclosure process with a recording date on or before the date noted above. REOs have been repossessed by a bank, lending institution or government sponsored loan guarantor such as Fannie Mae, Freddie Mac, HUD or the VA. REO data is accessed through RealtyStore’s proprietary database which is derived through hundreds of public and private data providers. Local housing data is determined from third party and public records. Mortgage calculations based on 30-year fixed rate FHA insured loan rate published 8/17/2016 at 3.49% APR with 3.5% down payment. Payment amounts displayed are principle and interest only. Taxes, insurance and other fees are additional.