Top 10 College Towns for Buying Foreclosures
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It’s the time of year when proud parents are sending their kids off to college while booster clubs are revving up for the impending college football season. What better time to consider the best college towns for investing in foreclosures?
For parents, buying a home off campus for their kids to live in can be a very pragmatic business decision. Investing in college-town real estate can also make sense for alumni or other investors looking for a property that generates a steady cash flow in a location they love — if they’re willing to put up with the heightened potential for property damage, continuous repairs and occasional evictions from student tenants who don’t feel responsible for taking care of the property.
Thanks to foreclosure sales data compiled by Foreclosure News Report for the first half of 2011, we have put together a Top 10 list of college towns for buying foreclosures.
The primary criteria for these Top 10 were the average discount on a foreclosure purchase — the percentage difference between the average sales price of properties in foreclosure and the average sales price of properties not in foreclosure — along with the percentage of all sales that were of properties in foreclosure.
Palo Alto, Calif. | Stanford University
Known as the “birthplace of the Silicon Valley,” 94 foreclosure properties sold in Cardinal territory for an average price of $350,886 during the first half of the year — an astounding 69 percent below the average price of properties not in foreclosure during the same time period.
Known as the “birthplace of the Silicon Valley,” 94 foreclosure properties sold in Cardinal territory for an average price of $350,886 during the first half of the year — an astounding 69 percent below the average price of properties not in foreclosure during the same time period.
Foreclosures accounted for 17 percent of all homes sales in the area during the period, indicating there are plenty of foreclosure deals available but not so many as to drag down the entire market.
Columbus, Ohio | Ohio State University
For the first six months of 2011, Buckeye fans paid an average sales price of $57,700 for foreclosure properties — a 58 percent discount off the average sales price of properties not in foreclosure.
For the first six months of 2011, Buckeye fans paid an average sales price of $57,700 for foreclosure properties — a 58 percent discount off the average sales price of properties not in foreclosure.
A total 999 foreclosure properties sold during the period, accounting for 17 percent of all home sales in the area, again showing plenty of deals without foreclosure activity overwhelming the local housing market.
Louisville, Ky. | University of Louisville
The city that Cardinal fans call home base had 889 foreclosure properties sell during the first six months of the year, representing nearly 25 percent of all home sales during the period.
The city that Cardinal fans call home base had 889 foreclosure properties sell during the first six months of the year, representing nearly 25 percent of all home sales during the period.
Properties in some stage of foreclosure sold at an average sales price of $84,495 during the first six months of the year, 51 percent below the average sales price of properties not in foreclosure.
Evanston, Ill. | Northwestern University
Just 20 miles north of downtown Chicago, Evanston had 74 foreclosure properties that sold in the first half of 2011 for an average sales price of $190,930 — a discount of 47 percent off the average sales price of properties not in foreclosure that sold during the same time period.
Just 20 miles north of downtown Chicago, Evanston had 74 foreclosure properties that sold in the first half of 2011 for an average sales price of $190,930 — a discount of 47 percent off the average sales price of properties not in foreclosure that sold during the same time period.
Foreclosures accounted for 24 percent of all home sales during the first half of 2011 in Wildcat territory.
Baton Rouge, La. | Louisiana State University
Foreclosure sales in LSU Tiger country accounted for just 14 percent of all home sales in Baton Rouge during the first half of the year, with 221 properties in some stage of foreclosure selling during that time period — an almost 15 percent increase from the previous six months.
Foreclosure sales in LSU Tiger country accounted for just 14 percent of all home sales in Baton Rouge during the first half of the year, with 221 properties in some stage of foreclosure selling during that time period — an almost 15 percent increase from the previous six months.
Foreclosures in Baton Rouge sold for an average price of $115,043 — a 45 percent discount.
Tucson, Ariz. | University of Arizona
Fifty percent of all residential sales in the home of the Arizona Wildcats were foreclosure sales through mid-year 2011, allowing for investors to pick from a plethora of deals.
Fifty percent of all residential sales in the home of the Arizona Wildcats were foreclosure sales through mid-year 2011, allowing for investors to pick from a plethora of deals.
For the first six months of the year, 3,068 foreclosure properties sold in Tucson for an average price of $116,916 — 41 percent below the average price of non-foreclosure properties. Foreclosure sales were up almost 13 percent from the previous six month period.
Knoxville, Tenn. | University of Tennessee
Foreclosures accounted for only 8 percent of all residential sales in Volunteer territory during the first six months of 2011, with 431 properties in some stage of foreclosure selling in Knoxville during the first half of the year.
Foreclosures accounted for only 8 percent of all residential sales in Volunteer territory during the first six months of 2011, with 431 properties in some stage of foreclosure selling in Knoxville during the first half of the year.
Foreclosures sold at good discounts, with an average sales price of $108,595 — 41 percent below the average sales price of properties not in foreclosure during the same time period.
Tallahassee, Fla. | Florida State University
The Florida state capital, Tallahassee was rated one of the nation’s Top 10 Bargain Retirement Spots by U.S. News & World Report earlier this year.
The Florida state capital, Tallahassee was rated one of the nation’s Top 10 Bargain Retirement Spots by U.S. News & World Report earlier this year.
For the first half of 2011, the home of the Seminoles had 339 foreclosure sales, a 14 percent increase from the previous six month period and up 11 percent from the first half of 2010. Foreclosure properties in the area sold for an average sales price of $112,790 — a 35 percent discount. Foreclosure sales accounted for nearly 29 percent of all home sales during the period.
Lubbock, Texas | Texas Tech University
The home of the Red Raiders documented 74 foreclosure sales for the first half of the year, selling for an average sales price of $91,454 — a 33 percent discount. Foreclosure sales accounted for only 5 percent of all residential sales in Lubbock during the six-month period.
The home of the Red Raiders documented 74 foreclosure sales for the first half of the year, selling for an average sales price of $91,454 — a 33 percent discount. Foreclosure sales accounted for only 5 percent of all residential sales in Lubbock during the six-month period.
Ann Arbor, Mich. | University of Michigan
Wolverine boosters saw 130 foreclosure properties sell during the first six months of the year, 24 percent of all residential sales during the period. The average foreclosure sold for $181,766 — 31 percent below the average sales price of properties not in foreclosure that sold during the same time period.
Wolverine boosters saw 130 foreclosure properties sell during the first six months of the year, 24 percent of all residential sales during the period. The average foreclosure sold for $181,766 — 31 percent below the average sales price of properties not in foreclosure that sold during the same time period.
With an average foreclosure discount of 44 percent, these 10 college towns offer parents, alumni and other prospective real estate investors plenty of opportunity to purchase a bargain property in a stable housing market anchored by a large university providing a steady stream of potential renters.
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This article was excerpted from the August 2011 issue of the Foreclosure News Report, published by RealtyTrac. Order a free issue of this award-winning newsletter.
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