In the first quarter of 2011, the market has continued to waver. The bank owned homes that once flooded the market are now far less than the Short Sales. If you don't know what a short sale is, let me explain.
When someone is either already behind on their mortgage or about to get behind, due to personal problems, ie sickness, hospitalization, loss of employment, etc. then the bank that owns the mortgage is going to start looking to foreclose. The home owners credit is going to slide, hugely.
By selling his/her home at short sale, it means they are hoping that the bank will take a lesser amount than is owed on the mortgage.
This does not mean the homeowner will NOT still have bad credit, but it (in many cases) will be a shorter time to wait to be able to buy a home again.
There are loads of short sales on the market, and they tend to take a long time to close, sometimes with the banks foreclosing anyway, however, some of these short sales are excellent buys if you have the time.
It won't be this way forever. Summer of 2011 will probably bring a few more foreclosures, but the circle will continue and eventually, the price of homes are going to start creeping back up, along with the interest rate.
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