According to a recent ATTOM Data Solutions report, foreclosures in the State of New Jersey hit an 11-year high in 2017. This represented a foreclosure peak for the state’s crisis real estate industry. Yet, this also presents itself as an opportunity for those with the assets and ability to scoop up these distressed properties now coming to market.

The injection of listings will most likely be seen as timely for housing market.

There are a number of net effects from this wave of foreclosures, one of which is a growing number of displaced former homeowners originally from the lower- and middle-income brackets who are unable to get another mortgage, who are now being forced to rent.

Another trend that is emerging is that the experienced real estate investors, home flippers, are buying REOs, which is attracting other potential investors who believe that they will cash-in on the inventory squeeze.

There is another niche of professional investors who have been able to acquire these homes in bulk, which will convert into a solid cash-flow system. This inventory couldn’t come at a better time for the buyer-starved New Jersey home flippers who are looking to buy homes and convert them to rentals.

Investors flipped more than 207,000 single-family houses and condos in the U.S. last year.

The average flip generated gross returns of 50% in 2017, compared to 28% in 2006. Last year 35% of flippers financed their acquisitions, representing the highest share since 2008. This compares with the 63% who financed their flips in 2006.

In some ways, New Jersey has bucked the national trend, which is marked by bank repossessions nationwide falling to an 11-year low in 2017. The primary reason is attributed to New Jersey’s practice of “judicial foreclosure,” where foreclosures are handled through the court system, causing the process to be more advantageous to the owners who are in foreclosure.

Currently, New Jersey leads the nation with 1.61% of the state’s homes in foreclosure during 2017. In December, the number of new bank-owned homes nearly doubled to 2,308 from 1,448 in November.

The number of foreclosures is coming to the market at a time when the inventory of homes across the state is currently under the 6-month threshold, which is considered to be normal. In addition to the inventory shortage, buyers are entering the market with renewed vigor as demonstrated by January figures. Homes remained on the market for an average of 72 days, according to data from New Jersey Realtors, which is down from 86 days for the same month in 2017 and 94 days in January 2016.