Identifying markets to invest in

RealtyTrac recently reported the top 10 U.S. markets for foreclosure buying and investing during the first quarter of the year, with Indianapolis, Indiana, taking top honors.

According to the study, Indianapolis had the lowest sales price of the chosen markets during the fourth quarter of 2010, at $106,000, and the highest affordability with 93.5 percent of homes affordable for the average income. Other cities on the list included Wincehster, West Virginia, Tucson, Arizona, and Salt Lake City, Utah.

RealtyTrac rated the top 25 metro areas in the country in 10 different categories, including lowest unemployment rates in March 2011, lowest average foreclosure sales prices in first-quarter 2011 and biggest average discounts on foreclosure sales in first-quarter 2011.

RealtyTrac's Foreclosure Market Report for May found five states accounted for 51 percent of all foreclosure fillings. The states were California with 51,906, Florida with 19,192, Michigan with 14,614, Arizona with 13,122, and Nevada with 11,039 properties.

While foreclosure inventory has been declining slowly, the inventory of unsold bank-owned REOs has been growing the last two months, RealtyTrac reports. The study blames weak demand from consumers for the rise in REO inventory.  

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