A year ago we had a market in Oakland with 10 months worth of inventory. Foreclosures were coming on the market faster than a salad-master salesman comes on to you. Boy have things changed since then. You don't have to be the sharpest tool in the shead to know that it makes sense to buy a house for 50% or less of the cost of building one. The public, has figured it out. Now, as I write this, there just isn't enough good inventory out there. Well priced REO's (bank owned) homes are currently selling within 72 hours of their list date. And many of them for all cash. If you're a buyer, you want to be ready, pre-approved, knowledgeable, questions all answered. When the property shows up you be ready to write the contract.
Right now there is a window of opportunity for sellers. If you need to sell and have been waiting, this might be the time. Word in the office is there will be more foreclosures coming, that the banks have been holding back houses out of fear of deflating the market even further. Well, if you want to sell consider doing it before these properties are released. If you are priced well you'll have no problem selling. There are loads of buyers out there competing. Don't expect bidding wars like in the old days but do expect there to be a lot of activity.