LAS VEGAS -- Foreclosure activity took such a nosedive in Nevada last year that the Las Vegas metro area is now considered one of the worst places in the nation to buy a foreclosed home, RealtyTrac reported Wednesday night.
The Irvine, Calif., company that publishes real estate data at RealtyTrac.com estimated that of all metro areas with at least 500,000 residents, Las Vegas is now fourth worst when it comes to purchasing foreclosed homes.
Among the factors that played into this calculation: Las Vegas has only a seven months' supply of foreclosure inventory; foreclosure activity declined by nearly 57 percent from 2011 to 2012; and the average sales price of a foreclosed home last year was only 16.8 percent below the average sales price of a non-foreclosed home.
RealtyTrac determined that the best place in the U.S. to buy foreclosed homes is in the Palm Bay/Melbourne/Titusville metro area in Florida. This area has a 34 months' supply of foreclosure inventory, its foreclosure activity rose 308.7 percent over the previous year, and foreclosed homes sold at 28 percent below the average sales prices of non-foreclosed properties.
Nearly all of the areas that are considered by RealtyTrac as the worst places to buy foreclosures are in the western U.S.
Despite the sharp drop in foreclosure activity in 2012, Las Vegas still had the nation's 16th highest rate of foreclosure filings among metro areas. Roughly 3.1 percent of all Las Vegas homes last year received a default notice or notice of a pending trustee's sale or were repossessed by banks.