Along the Coast Blog: Lake Forest Foreclosures in Demand

Photo By Sam Gangwer/The Orange County Register

Demand for foreclosed homes in Lake Forest is high among first-time buyers and investors. Inventory of distressed homes in Lake Forest is sizeable, with 65 percent of the homes in active listing listed as either a foreclosure or short sale.

The highest inventory is in the under-$500,000 range. A year ago, the average price for homes for sale was $436,000 and that has dropped to an average price of $336,800.

Actually, Lake Forest is only fifth in the number of distressed homes on the market, behind Santa Ana, Garden Grove, Foothill Ranch, and Anaheim. The bulk of these distressed homes were purchased between 2004 and 2007, with small down payments.