It greatly depends on which market you are in as well as the surrounding cities. Most foreclosures are foreseen to be released onto the market the beginning of next year (2013) from what we have read. However, this may not be such a good thing, nor an the answer Realtors have been wanting...
With the release of mass foreclosures comes lower property values as most foreclosures are going to be sold below value, this will undoubtedly affect surrounding homes and communities. We all want a great deal, but what are the consequences of such going to be? This mass release of foreclosures may affect us negatively in the near future.
On another note with mass foreclosures on the market, "investors" will be caught up with this surge, leaving standard sales and most short-sales (due to the length of time to get bank approval) to the traditional buyer. You will have a much better chance of your offer being accepted at the listing price without such competition. Again, this may have a poor affect on Seller's and the market as currently most homes, due to such offer wars, are being sold over asking/listing price. This is assisting in the increase of property values and the housing market overall, seeing these numbers will also help build stronger consumer/buyer confidence. We have seen transactions with offers $70,000 over asking, which is reasonable in the current market. This is a strategy that Realtors and Seller's have caught on to and have used to their advantage. If your a Seller your market is now as it is foreseen that property values will decrease again next year, if you are a Buyer, waiting a few months may save you a chunk of change.
But all information is bound to change or be affected with the multitude of variables due to expire or be released. Real Estate is tricky, you can pretend to know the future and get lucky or you may fall completely short.