Foreclosures! Are they the only Homes selling?

I am asked this question almost daily! In our area foreclosures are keeping the prices of homes down, way down! 30% down in fact. Banks do not want to keep these properties and will reduce the price to below market value to sell them.  Buyers are looking for bargins, of course, who isn't in any market! When 70% of the homes selling are foreclosures, then it makes sense to think the price of these homes are key factors in buyers' buying decisions. Sellers entering the marketplace have to understand this is a beauty contest and price war, and the home that looks the best and has the best price will win, regardless if it is a bank owned property or not!  Sellers need to be serious sellers or wait the market out. The old adage, 'come on in the water is fine", is still true even in today's market!