The market for homes sales is already very competitive. Sellers are forced to give incredible deals they may or may not be able to afford in order to attract qualified buyers. Today, the Qualified Buyer Is King in this market, and if things weren’t fierce enough for home sellers, the market continues to swell with competition from foreclosures and other distressed sales.
A little more than ironic is that the lenders who made irresponsible loans, inflated housing values, caused millions to foreclose and suffer credit upheavals disqualifying them from new loans, are not only bailed out by their victims, but are now dumping a glutton of foreclosed properties on the market, making themselves the biggest competitor to those struggling to sell in order not to foreclose.
And who can compete with foreclosure prices? Very few.