Economy analysts say that although sales had not reached the levels seen since 1997, they may be finally making a comeback after going down following the economy plunge last autumn. However, they predict that prices will continue to fall well into the year. There are over ten thousands foreclosed homes that are awaiting to be sold. Also, as the recession gets worse and job losses increase, many buyers are likely not to be attracted by homes foreclosures.

The director of Joint Center for Housing Study (Harvard University), Mr. Nicolas Retsinas says people are likely not to buy new homes if they are worried about having a job tomorrow. The National Association of Realtors has reported that sales of foreclosed homes increased by 5.1 percent, from 4.49 million units in January to 4.72 million units in March. This was the highest increase in sales since July 2003. First time buyers contributed to this increase with over half of the houses sold going to them.

More people are buying foreclosure homes as there have seen some indications that the prices are about to rise. For instance, seller asking prices in Orange County and San Diego, California have started to rise. With this in mind, most investors are rushing to buy before things stabilize. Also, the competition seems to be fair as most home buyers are sticking to their budgets. In February, the number of foreclose homes that were not sold was 3.8 million, a 5.2 percentage increase. This means that people who are still interested in foreclosed homes for sale have a chance to buy before prices start to rise.