George Head

More Foreclosures in 2010 Mean Opportunities for Bargain Hunters

Published: Tuesday, 26 Jan 2010 | 10:55 AM ET

By: Diana Olick
CNBC Real Estate Reporter

“One might think that markets with a higher rate of foreclosure would offer the best discounts, simply due to a high level of foreclosure sale inventory, i.e. simple supply and demand.

But in some markets, like Las Vegas, banks are holding on to foreclosure inventory in order to keep prices from plummeting. By slowly releasing properties, they can create bidding wars.

Foreclosures make up a whopping 74 percent of all sales in Las Vegas these days, according to a new survey by Zillow.com, but they only offer a 23 percent discount off non-foreclosures.  That's because, again, the banks are controlling inventory.”