In my opinion we have probably reached bottom of the market.  How do I know? I'm glad you asked.  For the main fact that foreclosed single family homes less than 240k in a decent neighborhood gets swallowed up in no time and has multiple offers.  So how could prices get any lower?

 Short sales have flooded the market and soon the unsold ones will turn into foreclosures.  If prices do continue to decline it'll be because foreclosures have over supplied the market.  But as of right know bank owned properties only represent 1.6% of active listings in D.C (60 out of 3,733), 2.7% in Prince George's (213 out of 8,146) and 2.4% in Montgomery (165 out of 6,921).  I don't believe the number of foreclosures at the moment have any impact on market prices.  There are too few of them.

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