The foreclosure market is expected to see a boom in inventory levels later this year as the millions of American homes held up in foreclosure proceedings are dumped onto the market. The rate of foreclosed homes coming to market has slowed in recent months as paperwork and processing delays have held up property repossessions by the nation’s lending institutions. This so-called “shadow inventory” of homes, or distressed properties expected to fall victim to foreclosure, is estimated to consist of well over one million single-family homes in neighborhoods all over the country.

West Coast Foreclosures Lead the Way

Although declines have been posted in foreclosure activity in nearly every area of the country, the West Coast remains a hotbed of activity in 2011. Metropolitan areas in California, Arizona and Nevada account for 16 of the country’s top 20 cities with the most foreclosure filings according to data released by RealtyTrac. Nationwide the number of homes entering the foreclosure process has fallen 29 percent for thae past twelve months, year-over-year.

With the glut of foreclosed homes on the market currently or expected to arrive this later this year, 2011 may go down in history as the mother of all buying opportunities for people looking to purchase their first home or trade up to a larger residence. Foreclosures, bank-owned homes and short sales have served to depress property values across all types of housing units, including those where the homeowners are not underwater or behind on mortgage payments. All it usually takes is one or two comparable properties in the vicinity selling at a drastically reduced rate to effect all of the homes in the neighborhood, including standard listings. Don’t miss this chance to pick up a new home before prices and interest rates go back up - they always do!