Be careful with new developments. Foreclosures are currently concentrated in two areas: 1. New developments and 2. Area with high rates of sub-prime borrowers.
New developments tend to get hit hard at this point in the RE cycle because by definition they include the most recent buyers, and also include a lot of speculative buying (flippers, etc). The sub-prime areas tend to be lower income and the reasons for those foreclosures should be obvious from the daily news.
If you want to be in a more stable community, I’d recommend older areas (but not too cheap because of sub-prime issues). Just an opinion from someone whose owned 3 homes in SD (still have one).
