As of today, there are more than 300 single-family bank-owned foreclosures for sale in Los Angeles listed in the “active” status. These properties range anywhere from a 400 square foot fixer in South Los Angeles priced below $70,000, all the way up to a $2 million Hollywood Hills luxury foreclosure sited above the world-famous Sunset Strip. Although the selling prices on luxury foreclosures are often comparable to those of standard listings, distressed properties such as short sales and bank-owned homes should be carefully considered as they often sell for as much as 20 percent less than non-distressed houses.

Although not as numerous as single-family residences, there are more than 100 foreclosed condominiums for sale in Los Angeles today. At the lower end there is a 672 square foot condo listed at just under $65,000, and at the upper end of the market you’ll find a 2,800 square foot Century City condo with an asking price just over $790,000. As for townhomes in foreclosure in Los Angeles, there are just over 200 of these on the market today.

So, we’re looking at more than 600 bank-owned foreclosures on the market right now in the City of Los Angeles, alone. There are twice as many short sale properties on the market as foreclosed homes, today, as well. And thousands more in the surrounding communities. Does that mean I should buy now, or wait?

Los Angeles Foreclosed Homes in 2012 - What’s Next?

Experts are mixed on what to expect in terms of the inventory levels we can expect to see of foreclosed homes in Los Angeles on the market in 2012. Many experts predict a coming flood of foreclosures in Los Angeles to hit the market as banks recover from the “robo-signing” scandals and release tens of thousands of distressed homes onto the market (the so-called “shadow inventory” of pre-foreclosures) Still others believe the worst of the foreclosure crisis is behind us and inventory levels of foreclosed Los Angeles homes have peaked. Unless you’re psychic you really can’t know for sure.

However, what we do know for sure is this: housing prices are at least 20 percent below their peak, early 2000‘s housing-bubble levels in many areas of Los Angeles County. Interest rates have been near or below all-time lows on many loan products throughout 2011. Affordability measures show that, in many circumstances, buying a home is substantially less expensive than renting. And, historically-speaking, every time housing prices in California drop, they tend to return to even higher levels that their previous peak pricing levels.

For those buyers with substantial liquidity and/or the ability to secure financing, this could very well be the buying opportunity of a lifetime. Bank-owned foreclosures and short sale homes are unlikely to be available in such large numbers going forward, if history is any guide. It only makes sense to carefully consider a purchase at this time.