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The Best US Cities to Buy a Foreclosed Home

Best Foreclosure Bargains
The turmoil in the US housing market has been  punctuated with  a wave of residential foreclosures. With sellers looking to offload foreclosed properties, often at a loss, the discounted prices have been identified as potentially profitable investments by speculators betting on a housing rebound. But across the country, where are the best opportunities?According to analysis recently compiled by real estate website , some cities around the US offer significantly better prices for foreclosed homes
Photo: Getty Images \ Source: Zillow.com

The turmoil in the US housing market has been  punctuated with  a wave of residential foreclosures. With sellers looking to offload foreclosed properties, often at a loss, the discounted prices have been identified as potentially profitable investments by speculators betting on a housing rebound. But across the country, where are the best opportunities?

According to analysis recently compiled by real estate website Zillow.com, some cities around the US offer significantly better prices for foreclosed homes than others. By comparing the median price of a foreclosed home to the median price of a non-foreclosed home, Zillow calculated the cities with the largest average discount when purchasing a residential property under foreclosure.

So, what are the best cities to buy a foreclosed home? The results may surprise you. Click ahead for the list!

By Paul Toscano
Posted 26 Jan 2010

10. San Francisco, Calif.
Foreclosure discount: 24%Foreclosure as a % of resales: 39%Non-foreclosure median price: $530,000Foreclosure median price: $230,000ZHVI YoY Change: -7.3%
Photo: Mai-Linh Doan

Foreclosure discount: 24%
Foreclosure as a % of resales: 39%

Non-foreclosure median price: $530,000
Foreclosure median price: $230,000

8. (Tied) Kansas City, Mo.
Foreclosure Discount: 25%Foreclosure as a % of resales: 29%Non-foreclosure Median Price: $142,048Foreclosure Median Price: $97,152ZHVI YoY Change: N/A
Photo: Charvex

Foreclosure Discount: 25%
Foreclosure as a % of resales: 29%

Non-foreclosure Median Price: $142,048
Foreclosure Median Price: $97,152

8. (Tied) Riverside, Calif.
Foreclosure discount: 25%Foreclosure as a % of resales: 66%Non-foreclosure median price: $205,000Foreclosure median price: $140,000ZHVI YoY Change: -21.9%

Foreclosure discount: 25%
Foreclosure as a % of resales: 66%

Non-foreclosure median price: $205,000
Foreclosure median price: $140,000

6. (Tied) Los Angeles, Calif.
Foreclosure discount: 27%Foreclosure as a % of resales: 39%Non-foreclosure median price: $435,000Foreclosure median price: $232,000ZHVI YoY Change: -6.4%

Foreclosure discount: 27%
Foreclosure as a % of resales: 39%

Non-foreclosure median price: $435,000
Foreclosure median price: $232,000

6. (Tied) Denver, Colo.
Foreclosure discount: 27%Foreclosure as a % of resales: 25%Non-foreclosure median price: $225,000Foreclosure median price: $135,000ZHVI YoY Change: -2.3%

Foreclosure discount: 27%
Foreclosure as a % of resales: 25%

Non-foreclosure median price: $225,000
Foreclosure median price: $135,000

5. Phoenix, Ariz.
Foreclosure discount: 29%Foreclosure as a % of resales: 58%Non-foreclosure median price: $168,000Foreclosure median price: $100,000ZHVI YoY Change: -21.1%
Photo: Getty Images

Foreclosure discount: 29%
Foreclosure as a % of resales: 58%

Non-foreclosure median price: $168,000
Foreclosure median price: $100,000

4. Minneapolis-St Paul, Minn.
Foreclosure discount: 34%Foreclosure as a % of resales: 26% Non-foreclosure median price: $210,000Foreclosure median price: $114,300

Foreclosure discount: 34%
Foreclosure as a % of resales: 26%

Non-foreclosure median price: $210,000
Foreclosure median price: $114,300

3. Columbus, Ohio
Foreclosure discount: 38%Foreclosure as a % of resales:  19%Non-foreclosure median price: $158,000Foreclosure median price: $71,000
Photo: Rfgagel

Foreclosure discount: 38%
Foreclosure as a % of resales:  19%

Non-foreclosure median price: $158,000
Foreclosure median price: $71,000

2. Cincinnati, Ohio
Foreclosure discount: 39%Foreclosure as a % of resales: 15%Non-foreclosure median price: $141,000Foreclosure median price: $65,000

Foreclosure discount: 39%
Foreclosure as a % of resales: 15%

Non-foreclosure median price: $141,000
Foreclosure median price: $65,000

1. Pittsburgh, Pa.
Foreclosure discount: 59%Foreclosure as a % of resales: 10%Non-foreclosure median price: $123,000Foreclosure median price: $35,000

Foreclosure discount: 59%
Foreclosure as a % of resales: 10%

Non-foreclosure median price: $123,000
Foreclosure median price: $35,000