Foreclosure Auctions and Real Estate
Foreclosure auctions are very common in the US right now due to the sharp down turn in the real estate market and the slowing economy, even with low interest rates you still have to factor in the fact that the credit market is tight right now, lenders are not throwing money at people like they once were and as a result just about everything has slowed to standstill.
On one side of the equation you have everyday people hurting as they are forced to sell their homes and walk away and on the other side you have property investors climbing over each other to invest in foreclosed real estate. History tells us that real estate runs in cycles like other markets and is seen as a relative safe haven if you stick to some basic rules, people who understand this are buying at the low part of the market cycle and have the financial clout to ride out the downturn and profit when things eventually turn around. Looking at some different areas around the US foreclosures in Los Angeles are running at record levels as are foreclosure homes in New York - Other cites such as Detroit have major problems with people walking away from properties by the street load, this is not limited to the lower end of social spectrum, whole new estates are being abandoned. Looking at a street full of near new empty homes paints a pretty grim picture and does not at all reflect what you would expect to find in the USA in 2008.
The question of how far off is recovery is the important one to consider, with energy costs skyrocketing and consumer confidence at low levels the outlook for the short term is not good, factor in emerging economies such as China and India and the competition for resources increases. Increased energy costs add to the cost of everything so the smart money is on high inflation which will put more pressure on consumers. Real estate may take more than a few years to recover in the US, if your cashed up right now then it may be a good time to take a long term position on some property. You might also like to investigate other options such as the Dubai real estate market, this part of the world is still growing at a rapid pace and is considered by many to be one of the most exciting places in the world right now.