Buying a foreclosed home is no longer the big bargain it used to be.
In South Florida, the discount for foreclosures narrowed to 2.9 percent below a comparable non-distressed home in September from 6.8 percent a year earlier, according to Zillow.
The foreclosure discount for the tri-county area of Miami-Dade, Broward and Palm Beach counties peaked in August 2008, when bank-owned homes fetched 22.7 percent less than non-distressed homes, the Seattle-based real-estate information firm said.
Nationwide, the foreclosure discount was 7.7 percent in September, down from 9.1 percent a year earlier, Zillow said. The widest gap nationally between foreclosed and non-distressed sales was 23.7 percent in September 2009.
"The smallest foreclosure discount is found in places where competition for homes is so high, people there are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability," said Dr. Stan Humphries, Zillow's chief economist.
Most Popular Stories
- National Retail Federation Reduces Sales Forecast
- Execs Help Entrepreneurs, Get Chevy Volts
- Amazon Hiring on Calif.'s Central Coast
- Pandora Tumbles in Late Trading
- Sporty Ford Fiesta Fires on All 3 Cylinders
- Prison Workers Wanted
- Zillow in Reported $2B Bid for Real Estate Rival Trulia
- Jennifer Lopez Throws Big Bash for Birthday
- Small Firms Take Out the Trash in Jersey
- Citigroup Unit Paying $5 Million to Settle SEC Charges