HOTTEST REAL ESTATE INVESTING MARKETS FOR 2023
MOST POPULAR MARKETS Here are the top 10 hottest markets based on each of those two criteria among 60 U.S. metros with the most foreclosure auctions occurring in fourth-quarter 2022, according to data from Auction.com. With a couple of notable exceptions, real estate investors flocked to middle-America, safe-haven markets in the fourth quarter of 2022. The market with the biggest increase in sales rate in fourth-quarter 2022 compared to fourth-quarter 2019 was the Quad Cities (Davenport, Moline, Rock Island, and Bettendorf),
distressed properties, anticipating that local housing trends will hold up well enough in 2023 for them to realize a healthy return when they resell or rent the rehabbed homes. The most potentially profitable markets are those in which investors purchased the furthest below estimated “as-is” property value in fourth-quarter 2022 relative to pre-pandemic purchase
property with cash and without an interior inspection. A transparent auction marketplace like Auction.com leverages real- time, competitive bidding to reveal each property’s true, risk-adjusted market value, limited only by the foreclosing lender’s credit bid: the minimum amount the lender is willing to sell the property for, capped at the total debt owed. These are the markets where investors have the biggest cushion to realize healthy returns in 2023, even if local housing trends represent a headwind for their resale or rental exit strategies.
discounts in fourth-quarter 2019. A discount below that
estimated value may be seen in the foreclosure auction context since buyers are taking on a significant risk in purchasing a distressed
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