DISTRESSED PROPERTY BUYING OPPORTUNITY BY MARKET
2023 AVG FORECLOSURE AUCTION PRICING: PCT OF AFTER-REPAIR VALUE
“When she bought it, it was a $35,000 house. Now it’s worth about $180,000.” Even in markets like Birmingham, where scheduled foreclosure auction volume is 44% below 2019 levels, buyers willing to take on the extra work and risk involved with buying a distressed property can often find inventory to buy. “The center part of Birmingham is run down … so the properties are very, very cheap there,” Barone said. “It needs to be an area that’s a low-budget area but also is a nice street.” OPPORTUNITIES BY MARKET Distressed property-buying opportunities will be easier to find in early 2024 in markets where scheduled foreclosure auction volume in late 2023 was higher relative to 2019 levels.
Larger markets with scheduled foreclosure auction volume in third quarter 2023 that was above the third quarter 2019 level included Detroit (40% above), Denver (44% above), Minneapolis-St. Paul (28% above), New Orleans (1% above), and Indianapolis (8% above). Out of 391 U.S. markets analyzed in the Auction.com data, 87 (27%) had third quarter 2023 foreclosure volumes that were at or above third quarter 2019 volumes. On the flip side, major markets where scheduled foreclosure auction volume in the third quarter of 2023 was still less than half of 2019 levels included New York (74% below 2019 level), Phoenix (57% below), Philadelphia (65% below), Los Angeles (62% below), and Miami (72% below). Nationwide, scheduled foreclosure auction volume in the third quarter of 2023 was up just 1% from a year ago. Scheduled
foreclosure auction volumes were up from a year ago in 172 of the 319 markets analyzed (54%). Among major markets, those with an annual increase in scheduled foreclosure auction volume included Chicago (up 27%), Philadelphia (up 23%), Washington, D.C. (up 35%), Riverside-San
Bernardino in Southern California (up 32%), and Pittsburgh (up 25%).
Major markets with an annual decrease in scheduled foreclosure auction volume in the third quarter of 2023 included San Antonio (down 24%), Birmingham (down 39%), Tucson, Arizona (down 24%), Nashville (down 34%), and Kansas City (down 27%). •
Daren Blomquist is vice president of market economics at Auction.com. In this role, Blomquist analyzes and forecasts complex macro and microeconomic data trends within the marketplace and industry to provide value to both buyers and sellers using the Auction.com platform.
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