Right now it's a great time for first time home buyers and homeowners that have owned their home for more than 10-15 years. For them, the decrease in home values isn't a direct hit; in fact, it's a bonus if you're looking to purchase. On the other hand, Inman News reported that in the fourth quarter, loans that entered foreclosure were at a record rate and that things are not looking up anytime soon. Declining home values do not provide incentive for homeowners to keep up their payments when they have no or negative equity. States like California, Florida, Arizona and Nevada are going to take longer than others to straighten out due to the fact that there was overbuilding and now there is a surplus of homes. Predictions of a stronger market and better loan situation are looking into at least the end of 2008. Foreclosure numbers can't hit peak until the inventory starts to decline and home values start to even out and rise.
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