When many investors and first time homebuyers think about purchasing a home in the current real estate market, a few things come to mind. First, can I get an incredible property for a bargain? Many homes are on the market for a fraction of the market value due to the high number of foreclosure properties. From foreclosure auctions and foreclosure sales to short sales, there are ample opportunities for investors to purchase a property below market value. Second, buyers and investors want to know how low of an interest rate they can secure.
However, when you purchase a foreclosure property there are some aspects that may deter some buyers and real estate investors that are looking for a long-term investment opportunity. For example, are you a first time homebuyer that may desire to sell your home in a few years and upgrade to a bigger and better property? If so, then honestly a foreclosure property may not be your best bet, especially if the area has a lot of foreclosures. When a given area has a surplus of foreclosures the home values ebb, which could provide less of a return on your investment if you seek to sell the home within the next 2-3 years.
In these situations, it may be best for you to consider areas with the lowest foreclosure rates and therefore the most stable home prices.
Of the top 5 cities with the lowest foreclosure rate, three of the cities are in the Lone Star State-better known as Texas. Bryan-College Station, Midland, and San Angelo have a 1.0%, 1.3%, and 1.5% foreclosure rate respectively. Each of these areas is great places to live with College Station being the home to Texas A&M, Midland being home to incredible weather, and San Angelo being home to a bustling oil and health-care industries.
The other two cities coming in at the top 5 include Bismarck, North Dakota and Corvallis, Oregon, both with a 1.3% foreclosure rate. Bismarck is the capital of North Dakota and is rich in scenery with its beautiful landscapes and outdoor adventures. Corvallis also prides itself on its beautiful views and artistic culture, complete with wineries and Oregon State University.
What does each of these areas all have in common? A sense of community and a thriving sector (whether it’s an institution of higher education like Texas A&M or health-care success) that keeps the city grounded and keeps residents in their homes. Each of these places represents relatively stable real estate markets that can prove to be rather attractive to buyers seeking to live in an area with stable home prices.
In the end, sometimes it is good to look at areas with the lowest foreclosure rates, especially if your goal is to buy a home and then place it back on the market in the near future. Areas with the lowest foreclosure rates tend to have the most stability, and therefore are great for potential homebuyers and investors seeking to buy a home that will maintain its property value.