Economists feel that a second round of foreclosures will likely hit sometime this summer but the concern as to what effect it will have on the housing market is mixed.
As the first round of foreclosure inventory is decreasing rapidly, the concern is that this next wave of foreclosures will push down home prices once again. However, that may not be the case.
Today, banks are much more fluid in their process in dealing with the current backlog of foreclosures, so when the next wave hits they will be much more apt at handling this new influx which will allow the housing market to absorb the foreclosures more quickly preventing home prices from dropping again.
Also, some economists feel that home prices will actually increase in certain markets around the nation.