This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Best Cities for Short Sales

Fourth-best metro area for short sales: Grand Rapids, Mich.
Percent increase in short sales: 81%

Late President Gerald Ford's hometown saw a big jump in short sales during the fourth quarter, and Blomquist suspects that's because 37% of Michigan mortgage borrowers are "underwater."

Underwater consumers owe more on their mortgages than their homes are worth, so they can sell properties only though short sales or by ponying up cash to cover their deficits.

In Grand Rapids, a 1-million-person metro area in the state's southwest region, short sales sold for $91,145 on average in the fourth quarter. That's a $53,158 discount from their owners' remaining mortgage debts.

Third-best metro area for short sales: Fresno, Calif.
Percent increase in short sales: 97%

Located in the heart of California's agricultural Central Valley, Fresno has seen falling home prices and lots of foreclosures in recent years.

But Blomquist says that makes the 1.1-million-person metro area a great location for short-sale buyers.

:"There's pretty much nowhere for the market to go but up," he says. "You're pretty safe in expecting the value of any home that you buy to appreciate over time, and prices are so low that it's much easier to make money on a rental."

The typical Fresno short sale sold for just $145,313 during the fourth quarter -- $89,140 below the average seller's mortgage balance.

Second-best metro for short sales: Visalia, Calif.
Percent increase in short sales: 106%

Like nearby Fresno, Visalia has seen declining prices and plenty of foreclosures during the bust.

But again, Blomquist says that makes the 452,000-population metro area a good choice for bargain hunters.

"The Central Valley markets have been bouncing back and there's actually a shortage of homes for sale -- but if you can land a short sale there, it's probably going to appreciate over the next few years," he says.

Visalia's average short sale cost $126,496 during the latest quarter -- $71,102 below the property's unpaid mortgage principal.

Best metro area for short sales: Santa Barbara, Calif.
Percent increase in short sales: 107%

Median house prices in upscale Santa Barbara County peaked at $878,000 in 2007 during the housing boom, then tumbled to just $297,000 a mere 20 months later.

Blomquist says that's left the metro area, a desirable coastal community some 95 miles northwest of Los Angeles, with lots of distressed properties.

"Homeowners can get in over their heads even in very high-end markets," he says.

The typical Santa Barbara-area short sale sold during the fourth quarter for only $283,825. That's $178,201 below the property's remaining mortgage balance./p>

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.63 -0.36%
FB $78.83 -1.20%
GOOG $570.35 -0.17%
TSLA $197.42 0.05%
YHOO $42.81 -2.90%

Markets

DOW 18,145.45 -143.18 -0.78%
S&P 500 2,101.29 -16.10 -0.76%
NASDAQ 4,961.92 -46.1760 -0.92%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs