forclosures will be much less from this point on

government is giving so much pressures to banks to slow down and to stop forclosures by offering loan modifications.

forclosures happen the most on poor area, then the median income neighborhood, the last into rich neighborhood.

unfortunately the rich neighborhood do hold their assets value very well, even there is some forclosures here and there, they will always get bought very fast.

there are a couple of reasons for this:

most good school district rich neighborhood are satuated ( no more vacant lots to build new houses on ), the most only choices for builders are tear down and rebuilt, most of the time the lot itself is the value of the house. Lot values go up all the time with the population growing.

there's reasons why people get rich, because they don't give up, they protect themselves from risk very well, and yes, they have lots of money-making businesses.

by the time the forclosure goes into rich neighborhood, builders have long time stopped any new developments - no more new supplies.

but there's always demand for housing. For those people who do not own any houses for youself to live in, this is perfect/best time to snap deals. opportunities pass by very quickly and nobody can predict when is exactly the time the housing market bottom out.

Whatever you buy, dont' ever stretch your budget.