The Ten Biggest Foreclosure Markets

1.Miami-Fort Lauderdale-Pompano Beach, Fla.

• Homes in foreclosure process:58,624 (up 9.2% from a year ago)
• Ratio to total number of homes: 1/41
• Percentage already repossessed by bank (REOs): 22%
• Median Home Price: $185,000
• Average Foreclosure Sales Price: $128,400

Miami tops the list with the most homes in foreclosure, and more will come, especially among prime borrowers pressed by an 11.8% unemployment rate. Home sales in Miami have accelerated rapidly in the past year, especially in the glutted condo market. Condo sales grew by 43% over the year before, but the median price fell by 9%, to $115,000, pushed down by the glut of distressed properties. The competition to snap them up will be intense.

This House

2,070-square-foot home in Cutler Bay community built in 2005. Three bedrooms, 2.5 baths, loft room and two-car garage.

Last sold for: $372,000 (2005)

Current asking price: $220,000

2. Los Angeles-Long Beach-Santa Ana, Calif.

• Homes in foreclosure process:48,849 (down 26.9% from a year ago)
• Ratio to total number of homes: 1/91
• Percentage already repossessed by bank (REOs): 19%
• Median Home Price: $360,000
• Average Foreclosure Sales Price: $334,600

Despite an unemployment rate in Los Angeles of 11.7%, the number of foreclosures fell by almost 30% during the past year. Meanwhile, overall home sales dropped by 13%, and the median home price grew by 5.6%. If lenders continue to hold on to properties in inventory, buyers soon may do as well buying a “normal” home for sale as they would buying a foreclosure.

This House

1,276-square-foot home in the Polytechnic High area of Long Beach built in 1907. Three bedrooms, two baths, three-car parking in driveway, large front porch and enclosed patio

Last sold for: $230,000 (2003)

Current asking price: $249,900

3. Chicago-Naperville-Joliet, Ill.

• Homes in foreclosure process:44,732 (up 35.3% from a year ago)
• Ratio to total number of homes: 1/84
• Percentage already repossessed by bank (REOs): 28%
• Median Home Price: $229,000
• Average Foreclosure Sales Price: $229,000

Over the past year, the number of foreclosed properties in Chicago shot up by 35%. Now that unemployment has settled to about 9%, the rate of foreclosure is expected to fall. But foreclosure buyers can still snag a bargain.

This House

1,891-square-foot bungalow on Chicago’s Northwest side, built in 1926 on 0.9 acres. Five bedrooms, two baths and rear deck

Last sold for: $278,000 (2001)

Current asking price: $144,500

4. Phoenix-Mesa-Scottsdale, Ariz.

• Homes in foreclosure process:39,199 (down 3.4% from a year ago)
• Ratio to total number of homes: 1/44
• Percentage already repossessed by bank (REOs): 36.5%
• Median Home Price: $139,000
• Average Foreclosure Sales Price: $138,250

Phoenix experienced a small decrease in the number of homes in foreclosure during the past year. With an unemployment rate of 8.5%, below the national average of 9.1%, and a modestly recovering economy, the rate of foreclosure is expected to fall even further. But with the average sales price of a foreclosure almost the same as the median home price, home buyers will have to work to snag the best foreclosure bargains.

This House

2,542-square-foot home in Phoenix’s North Gateway Village built in 2006. Three bedrooms, three baths

Last sold for: $305,990 (2007)

Current asking price: $175,000

5. Riverside-San Bernardino-Ontario, Calif.

• Homes in foreclosure process:35,863 (down 25.3% from a year ago)
• Ratio to total number of homes: 1/41
• Percentage already repossessed by bank (REOs): 25.7%
• Median Home Price: $190,000
• Average Foreclosure Sales Price: $183,960

Despite a 14.2% unemployment rate, the number of properties in foreclosure has fallen sharply over the past year here. Meanwhile, the median home sales price rose by 8.1% -- to a level close to the average foreclosure sales price -- while sales of single-family homes fell by 27%. That means foreclosure buyers and investors may do just as well with a traditional sale as with a foreclosure.

This House

1,088-square-foot ranch in Riverside, near the Santa Ana River Regional Park, built in 1952. Three bedrooms, one bath, two-car garage

Last sold for: $385,000 (2006)

Current price: $159,900

6. Las Vegas-Paradise, Nev.

• Homes in foreclosure process:32,288 (down 20.1% from a year ago)
• Ratio to total number of homes: 1/25
• Percentage already repossessed by bank (REOs): 27%
• Median Home Price: $150,000
• Average Foreclosure Sales Price: $132,000

With the highest rate of foreclosure among the ten cities -- one in 25 homes -- Las Vegas has been savaged by the real estate bust. An unemployment rate of 14.1% -- higher than Detroit’s -- continues to undercut economic recovery and contributes to homeowners’ woes. Overall, sales of single-family homes fell 17% from 2009-2010, while the median home price dipped 3.1%. A whopping 70% of all sales in November involved a foreclosure or short sale, and nearly half were purchased with cash, mainly from investors. That means traditional buyers face plenty of competition in the foreclosure market.

This House

2,088-square-foot home in Las Vegas built in 2005. Three bedrooms, two baths, with loft, two-car garage and covered patio

Last sold for: $337,488 (2005)

Current asking price: $142,000

7. Atlanta-Sandy Springs-Marietta, Ga.

• Homes in foreclosure process:29,824 (up 20.3% from a year ago)
• Ratio to total number of homes: 1/72
• Percentage already repossessed by bank (REOs): 37.5%
• Median home price: $188,000
• Average foreclosure sales price: $117,280

The metro area’s unemployment rate (9.7%) is close to the U.S. average and is falling, so the foreclosure rate should level off or fall later this year. But Atlanta has a larger-than-average share of subprime mortgages, and foreclosures are still on the rise -- good news for bargain hunters. Overall, home sales are declining, and the median home price in Atlanta has fallen by 3% year-over-year.

This House

2,486-square-foot home southwest of Atlanta, built in 1997 on half an acre. Four bedrooms, 3.5 baths, two-story family room and three-car garage

Last sold for: $375,000 (2005)

Current price: $229,900

8. Detroit-Warren-Livonia, Mich.

• Homes in foreclosure process:26,971 (up 22.7% from a year ago)
• Ratio to total number of homes: 1/70
• Percentage already repossessed by bank (REOs): 40.7%
• Median Home Price: $59,000
• Average Foreclosure Sales Price: $72,725

Detroit was hit with a double whammy: Lots of subprime lending and high unemployment (currently 13.3%) as the auto industry tanked. The average sales price of foreclosures is higher than the median home price, indicating that Detroit’s more-expensive neighborhoods got caught in the foreclosure spiral and that there’s likely to be inventory that appeals to upscale buyers. Overall, the median home price fell by 1% over the past year.

This House

1,708-square-foot home in Grosse Pointe built in 1946. Three bedrooms, one bath and detached two-car garage

Last sold for: $240,000 (2002)

Current price: $124,900

9. New York City-Long Island, N.Y.- Northern New Jersey

• Homes in foreclosure process:20,504 (down 17% from a year ago)
• Ratio to total number of homes: 1/362
• Percentage already repossessed by bank (REOs): 12.6%
• Median Home Price: $425,000
• Average Foreclosure Sales Price: $291,960

The foreclosure rate, much lower than the rest of these cities, continues to fall, aided by an unemployment rate (8.4%) that’s less than the national average. Plus, lenders have repossessed just 13% of foreclosures, the least among the ten metro areas with the most foreclosures. Translation: not a lot of choices for bargain hunters. For example, over the past year, sales in New York’s Long Island counties fell 18%, yet the median home price rose by 1%.

This House

2,370-square-foot home in Shirley, N.Y (Long Island), built in 1977 on half an acre. Six bedrooms, two baths and one-car garage

Last sold for: $405,000 (2005)

Current price: $193,800

10. Tampa-St. Petersburg-Clearwater, Fla.

• Homes in foreclosure process:19,248 (up 13.1% from a year ago)
• Ratio to total number of homes: 1/69
• Percentage already repossessed by bank (REOs): 19%
• Median Home Price: $148,000
• Average Foreclosure Sales Price: $117,400

Because housing construction and related businesses have been mainstays of the local economy, the housing market’s downturn jacked up the unemployment rate (now 11.8%) and slid the local economy into a steeper recession than in many parts of the U.S. Investors with cash will have plenty of leverage in this still-recovering market.

This House

1,284-square-foot home in north Tampa built in 1997. Three bedrooms, two baths, vaulted ceilings and two-car garage

Last sold for: $215,000 (2007)

Current price: $109,900

More From Kiplinger

QUIZ: How to Prosper From Foreclosures

READ: Foreclosures at Rock-Bottom Prices

SLIDE SHOW: What $300,000 Buys You Now

SLIDE SHOW: What $75,000 Buys You Now

SLIDE SHOW: 10 Cities With the Lowest Cost of Living

SLIDE SHOW: 10 Cities With the Highest Cost of Living