There’s a glimmer of hope for the “Sunshine State” housing market, which is among the five “hardest hit” in the nation.

It was hit so hard, in fact, that investors near and far are now snatching up cheap deals left and right with cold hard cash.

Miami Herald reports today that a staggering 60 percent of South Florida purchases have gone to foreign buyers, pushing pending home sales in July up more than 40 percent in Miami-Dade county alone when compared to the year prior (2009).

Jack H. Levine, chairman of the board of the Miami Realtors, is “encouraged” with the latest numbers.

Here’s a snip:

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Buyer beware!

It’s perhaps the most important nugget of advice as it relates to investing in and/or buying foreclosed homes.

What you see isn’t always what you get, especially when distressed properties hit the auction block. Whether it’s a structural problem that costs thousands to fix or an encumbrance on the title that is virtually not fixable, foreclosures are inherently risky investments.

The Strand family, which purchased a deed at a foreclosure auction earlier this year for $96,000 cash, found out the hard way.

From the San Francisco Chronicle:

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It’s a question that countless homeowners are asking due in large part to a soft national housing market.

In California’s Bay Area, for example, sellers are having a hard time coming to grips with arriving at the right asking prices for their homes.

Foreclosures, which can often slice off up to 30 percent on the price of a home, are a big reason behind the mental battle.

USA Today explains the story of Emily Rennie, whose idyllic home near the water’s edge in Oakland, just can’t sell at the price she thinks it’s worth.

Here’s a snip:

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It’s no secret that foreclosures often offer buyers and investors significant discounts on home purchases.

Today, the brainiacs at Massachusetts Institute of Technology (MIT) and Harvard proved it with 12 years of research, revealing that “foreclosure reduces the value of a house by an average of 27 percent.”

MIT economist and study author, Parag Pathak, was surprised with the “large” finding.

Here’s a snip:

“It’s not surprising that there is a discount due to foreclosure. But it is surprising that it’s so large.”

Probate homes, which are those sold after the death of an owner, save buyers about 5 to 7 percent on average. Bankruptcy homes, meanwhile, reduce prices by about 3 percent.

Keep in mind that these are all averages, meaning that you can likely score even greater deals with a quick search on Foreclosure.com.

But we doubt that you would mind nearly a 30 percent discount (at the very least) on your next home purchase.

Foreclosures continue to account for about a third of all existing homes sold in the United States, according to a report released today by the National Association of REALTORS® (NAR).

The May 2010 figures indicate that distressed real estate is still in high demand, representing 31 percent of completed transactions in the month that included single-family, townhomes, condominiums and co-ops.

By comparison, distressed home sales hovered around 33 percent of the market share in the previous month (it was also 33 percent in May 2009).

Overall, existing home sales were down 2.2 percent “from an upwardly revised surge of 5.79 million units in April.”

NAR President Vicki Cox Golder provides context:

“With distressed sales at roughly the same level as a year ago, the gain in home prices is a hopeful sign that the market is in a good position to stand on its own without further government stimulus. Very affordable mortgage interest rates and stabilizing home prices are encouraging home buyers who were on the sidelines during most of the boom and bust cycle.”

To start your home search today click here. Foreclosure.com has the best real estate deals in your area … so you better find them fast before someone else does!