I can tell you from the being in the foreclosure industry that especially in southern california tens of thousands of bank owned homes are sitting on the banks books unlisted right now. Plus the tens of thousands that they are not foreclosing on for 12 or 15 months, this equals a major downward push. FannieMae and FreddieMac both have come out and said the current 28% of US mortgages that are underwater will be around 50% by 2011. This is not a time to buy real estate as an investment.
People buy for various reasons. My question earlier was will the continue to release them at the current pace or increase the number.