Cities with the Most Homes in Foreclosure

10. San Diego-Carlsbad-San Marcos, Calif.
> Foreclosure rate: 1 in 137.3 housing units
> Avg. sale price (foreclosed homes): $316,515
> Avg. sale price (nonforeclosed homes): $448,985
> Foreclosure sales as pct. of total: 34.05%

In the second quarter of 2012, there were 13,931 home sales in the San Diego area. Of these, 34% were foreclosure sales — well above the national rate of 22.8%. The average foreclosed home sold at a 29.5% discount. Although home prices have declined by 39.6% since reaching peak value in the first quarter of 2006, the area’s housing market remains especially expensive. In the first quarter of 2012, the median home price in San Diego was 5.1 times the median family income, almost twice as much as the national figure of 2.6 times income. Even foreclosed homes are quite costly: a home that has been repossessed cost an average of $307,538 in the second quarter of 2012, more than $50,000 above the average price of nonforeclosed homes sold in the United States.

9. Tampa-St. Petersburg-Clearwater, Fla.
> Foreclosure rate: 1 in 119.8 housing units
> Avg. sale price (foreclosed homes): $96,543
> Avg. sale price (nonforeclosed homes): $129,819
> Foreclosure sales as pct. of total: 20.44%

As of the first quarter of 2012, home prices in Tampa-St. Petersburg-Clearwater area had fallen by 45.4% in the preceding five years, and were down 49.6% from their peak in the second quarter of 2006. Even worse, Fiserv projects home values to decline a further 3.1% through the first quarter of next year. Recent area data have not been positive: in the second quarter of 2012, the number of homes in foreclosure rose by more than 50% year-over-year from 7,506 to 11,295. As a result, 12.1% of all area homes sold in the second quarter of this year were preforeclosure sales. The average price on these 2,243 homes sold was $100,809.

Also Read: America’s Most Affordable Housing Markets

8. Miami-Fort Lauderdale-Pompano Beach, Fla.
> Foreclosure rate: 1 in 109.9 housing units
> Avg. sale price (foreclosed homes): $130,186
> Avg. sale price (nonforeclosed homes): $185,293
> Foreclosure sales as pct. of total: 23.16%

Miami had the most homes sold of any metro area in the second quarter of 2012, at 45,223. However, the Miami housing market has seen better days, as home prices were cut by 52.1% between the first quarter of 2007 and 2012. Worse yet, home prices are projected by Fiserv to continue to fall at an average of 1% annually through the first quarter of 2017. Despite the fact that prices are expected to fall further, demand remains for the discounted properties offered in foreclosure sales, which sold at an average discount of 29.8%. In the second quarter of 2012, one in every 22 foreclosure homes sold nationwide was in the Miami area.

7. Orlando-Kissimmee, Fla.
> Foreclosure rate: 1 in 100.8
> Avg. sale price (foreclosed homes): $114,684
> Avg. sale price (nonforeclosed homes): $140,630
> Foreclosure sales as pct. of total: 27.76%

Homeowners in the Orlando area were profoundly affected by the housing crisis, as home prices declined 52.2% from the first quarter of 2007 to the first quarter of 2012. The area’s housing market remains troubled — prices are again expected to decline 6.8% in 2012, while the number of homes in foreclosure was up 35% year-over-year in the second quarter. On average, a foreclosed home cost $114,684, an 18.4% discount to nonforeclosed properties. Prices on properties that had been repossessed were even lower, costing an average of $110,922, or a discount of 21.1% versus nonforeclosed properties.

6. Chicago-Naperville-Joliet, Ill.-Ind.-Wis.
> Foreclosure rate: 1 in 100.5 housing units
> Avg. sale price (foreclosed homes): $131,562
> Avg. sale price (nonforeclosed homes): $242,511
> Foreclosure sales as pct. of total: 30.21%

In the second quarter of 2012, 37,785 homes were in foreclosure, a 37.1% increase since last year. This is only good news for those looking to buy an inexpensive home. In the quarter, repossessed properties cost an average of $116,899, less than half the cost of a nonforeclosed home in the area. Additionally, the average home in foreclosure sold at a 45.8% discount to nonforeclosure homes, well in excess of the 31.7% nationwide average discount rate. Chicago homes are projected to be much more expensive in the next few years, as Fiserv projects home values to rise an annual average of 6.9% between the first quarters of 2012 and 2017.