The real estate market continues to be of interest to most people as home values fall and inventories rise. And what home owner does not live in fear that a house down the block will suddenly go into foreclosure?

Foreclosures affect all US home owners because they have a downward effect on home values in their neighborhoods. Real estate agents and appraisers use the house sales that have occurred in the lat 3 to 6 months in determining the value of new properties that come on the market. So if a house in your neighborhood sells for a below market price due to a foreclosure or short sale, your property value will be negatively affected.

Now is a good time to buy a house - interest rates are at an historic low. And they are likely to rise at the end of March when the Fed gets out of the mortgage market. Prices have been drifting down over the last several years and inventories have been accumulating. Plus the Home Buyer tax credit is going to expire at the end of April. Of course, Congress could renew it, but there are no guarantees.