There has been $400,000,000,000 (billion) in real estate foreclosed or sold short (loan not paid in full) since the market turned down. Another wave of foreclosures will be hitting early next year. It is estimated there are $300+ billion in mortgage loans still in trouble.
That's actually good news. We are more than half way through this melt down! The real estate market has stabilized and some areas are experiencing appreciation. Yet, there is still opportunity to buy a home at the discounted price...and 5% interest!
Real estate prices will continue to increase from the low reached last winter.
Affordability will decrease as interest rates start to rebound to normal levels (7-8%).
It will be extremely important to buy with an eye on reselling.