If we go back in the last year, the public has been exposed to endless news on 'the bubble', and now upon us we are reading of 'foreclosure' and 'defaults' as a result of the latest media hype of the 'subprime lending industry failure' that is now upon us. This negative aspect has taken it's toll in our market place. Final phases of subdivision buildouts have had builders giving huge price incentives/packages to buyers. ALL of this has had a major effect on the resale market. The numbers I have most recently viewed are showing that the foreclosure/default rate are representative of only 6-8% of the homes in the whole county area. Though in general a small amount and those homes are being marketed at extremely reduced prices - the resale market has had to get in to line at the same time to compete. We are seeing homes on the market 120+ days, and not uncommon to see some sitting a great deal longer. As the few short sales and foreclosures actually proceed to a sale of record - that sale price will then be used in comparable analysis's, whether it be appraiser, final end investor, or Real Estate agents. One must truly compare apples to apples in this market - try as best to stay within a 15% variance, give major attention to curb appeal - and be open minded for any repairs needed. There seems to be a huge increase in buyer activity of late. There should be! Buyers have a huge amount of inventory to choose from - and serious buyers are aware that the interest rates are at an affordable level to take advantage of now. Many buyers with financing in hand are experiencing the extreme time lag when putting in bids on short sales. This in time is bringing them back to the resale market of homes not in that category. It is most important that all buyers have solid preapproval from a reputable lender. As the 100% financing guidelines have finally been revised, a seller's agent must work closely with the lending segment each step of the way to bring that sale to fruition.