More Foreclosures Expected in 2010

For some, more foreclosures in 2010 means more affordable housing options, for others this means losing their home. Depending on how you look at it, it may be a positive thing for those first time homebuyers who would not typically be able to afford to buy. One thing that the housing experts can agree on, is that we can expect to see more foreclosures in 2010 and that they may out pace last year. If you are a bargain hunter, now is the time to start looking.

In the month of December, a third of home sales were of "distressed properties" either foreclosures or short sales. "Overall, foreclosures in 2010 will be just as high as we saw in 2009," says Lawrence Yun, Chief Economist for the National Association of Realtors. "But the key factor is whether the buyers are ready to purchase distressed sale properties, and right now we are seeing that they are." (More Foreclosures in 2010 Mean Opportunities for Bargain Hunters)

Some people may think that in an area with a high rate of foreclosures that the houses may be more affordable, but in some cases banks are holding on to those foreclosed properties and slowly releasing them to the market to prevent the value of the home from plummeting. In this case, it is important to keep your eyes and ears open for houses that sneak onto the market. Those are the ones that will go fast!