Foreclosure rate spikes!

I read the in the local newspaper this morning that the number of foreclosure filings in the area has spiked. You can read the article here.

All of this bad news scares buyers but it also scares sellers too. This is the kind of environment that can lead to getting a great deal on a home. Although, I am amazed how some sellers are totally oblivious to what is happening in the real estate market. Many of them don't think that the recession and softening of the market has affected the price of their home. The fact that they painted a bedroom or added a screen door seems to make them think that the value of their home has increased in the last couple of  years.

Wouldn't you rather be negotiating a great deal on a home when the news day in and day out is bleak? When the news starts getting better (and it will eventually), the sellers will become more hopeful.