Want a Discount on Your Next Home? Realtor.com®'s New Report Says Look at Foreclosures
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E-mailThe Median Foreclosed Home Sells for 27% Below Estimated Value — and Gets 26% More Views Than a Typical Listing
Foreclosure listings made up 1.3% of all homes for sale in
"Foreclosures are normalizing, not accelerating into a crisis," said
When a foreclosed home fails to sell at auction, it becomes Real Estate Owned, or REO, property, often listed on an MLS by the lender, who prices it to sell quickly. The median REO discount has ranged from roughly 20% to 35% since 2018. The high end of that range was reached in 2022 and 2023, when the frenzy of pandemic-era buying inflated automated home valuations and made the discount look larger than it was. As price growth has flattened in 2025 and 2026, the discount has settled back to a more typical 27.2%.
The metros carrying the highest share of foreclosure listings tend to be more affordable ones, where buyers entered homeownership with thinner margins.
Top Metros by Foreclosure Share of Listings,
Metro | Foreclosure Share of | Median Listing Price (All |
10.2 % | ||
7.7 % | ||
6.0 % | ||
| 5.7 % | |
5.7 % | ||
5.4 % | ||
5.3 % | ||
5.2 % | ||
5.2 % | ||
5.1 % |
With one exception, every metro on this list sits below the national median list price. Three
REO listings attract plenty of attention, but still generally take longer to sell. The slower pace reflects the product: REO listings had 30.4% fewer photos and descriptions 33% shorter than those of standard listings. Most sell as-is, meaning buyers absorb any needed repairs. Buyers can inspect the interior and use conventional financing, but the condition and limited marketing materials mean many take longer to commit — or they decide to walk away because of the higher level of uncertainty.
"In a market where affordability is still the dominant challenge, foreclosures offer a path to a meaningful discount," said
Appendix - Top 100 Metros
Metro | Foreclosure Share of | Median Listing Price (All |
1.3 % | ||
1.8 % | ||
1.7 % | ||
0.1 % | ||
2.1 % | ||
1.7 % | ||
0.7 % | ||
5.2 % | ||
1.3 % | ||
4.0 % | ||
Boise City, ID | 1.1 % | |
2.7 % | ||
1.3 % | ||
0.0 % | ||
0.4 % | ||
1.0 % | ||
4.4 % | ||
1.0 % | ||
0.1 % | ||
0.6 % | ||
1.1 % | ||
2.7 % | ||
0.1 % | ||
6.0 % | ||
0.6 % | ||
0.6 % | ||
1.8 % | ||
0.1 % | ||
1.1 % | ||
1.6 % | ||
0.2 % | ||
0.1 % | ||
0.5 % | ||
1.9 % | ||
1.7 % | ||
0.2 % | ||
2.2 % | ||
0.1 % | ||
1.5 % | ||
0.1 % | ||
1.2 % | ||
1.9 % | ||
Las | 1.3 % | |
0.5 % | ||
0.3 % | ||
2.0 % | ||
0.3 % | ||
| 0.7 % | |
2.1 % | ||
0.0 % | ||
5.1 % | ||
0.2 % | ||
1.1 % | ||
1.1 % | ||
0.3 % | ||
0.4 % | ||
| 4.7 % | |
1.9 % | ||
5.3 % | ||
1.4 % | ||
0.2 % | ||
1.5 % | ||
Providence- | 1.0 % | |
0.2 % | ||
0.2 % | ||
0.5 % | ||
2.3 % | ||
2.0 % | ||
Salt | 0.1 % | |
0.3 % | ||
0.4 % | ||
1.9 % | ||
0.2 % | ||
0.8 % | ||
1.4 % | ||
2.0 % | ||
3.5 % | ||
1.5 % | ||
4.1 % | ||
1.2 % | ||
1.8 % | ||
1.9 % | ||
Urban | 0.1 % | |
| 0.6 % | |
| 1.9 % | |
0.1 % |
Methodology
Foreclosure sales are identified as those with the REO sale flag in Realtor.com deed data. Foreclosure listings are identified as those with the REO flag in Realtor.com listing data. AVM valuations are computed by taking the median of each property's valuations within the month that the home sold, and the sale price is compared against the valuation to compute the discount. Listing performance metrics are computed by comparing the statistics for each listing against the medians for that listing's property type and zip code if there are at least 50 listings in the zip code or metro area if there are not 50 listings in the zip code. The difference between the individual listing's metrics and the local median is computed and the median of those differences is taken to determine the overall difference between foreclosure listings and typical listings.
About Realtor.com®
For over 30 years, Realtor.com® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media contact: Emily Do, [email protected]
View original content:https://www.prnewswire.com/news-releases/want-a-discount-on-your-next-home-realtorcoms-new-report-says-look-at-foreclosures-302818607.html
SOURCE Realtor.com
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