I have read many articles regarding home sales in the Phoenix area that are being, and have been bought up by investors.....another greedy bunch. They buy with cash, which eliminates families that have to get a mortgage, and they bid/offer low, and get them. The banks want to get rid of these foreclosures, and when they can get cash, they will take that over a mortgage any day. What these investors plan to do is hold the homes, and sell them when the market begins to pick up. They will probably inflate the prices at that time, pushing prices up......oh what a greedy bunch!! That's exactly what caused this economy, the greed, and most of that came from the mortgage market.
I am sure that there will be even more foreclosures since the banks are not lending like they used to for mortgages, and are now requiring a lot more of a down payment. I have been watching the Phoenix market since I am still trying to sell my condo in Manhattan, NYC, where the market has gone down anywhere from 20-40%. I have not been seeing prices going up, but have and continue to see them coming down. And, when they hit a ridiculous price level they are gone. So, yes it is a good time to buy, but you had better hurry, cash in hand if you want that foreclosed house before those greedy investors get there first!