For those investors who have seen a drop in profitability lately because of the heavy competition for the shrinking supply of distressed property, take heed. Not every state has experienced a severe decline in foreclosures on the market.
Realtytrac recently released a report about the 10 states with the highest foreclosure discounts, and many of these states may surprise you. These high foreclosure discount states include:
Pennsylvania with 44% average discount and $114,531 average sales price; Arkansas with 44% average foreclosure discount and $101,676 average sales price; Iowa with 45% foreclosure discount and $83,287 average sales price; Ohio with 46% discount and $77,487 average price; Michigan with 48% discount and $63,292 average price; Massachusetts with 49% discount rate and $200,511 average price; Kentucky with 49% discount and $64,880 average price; Illinois with 50% discount rate and $119,855 average price; Louisiana with 57% discount rate and $98,973 average price; Connecticut with 73% discount and $129,825 average price.