Experts differ on price effect of foreclosures, an article from The Gazette, reports that more than 3,500 foreclosures were filed in the county last year, which broke a 19-year-old record.  Some economists say that due to foreclosures in the first two months of 2008 exceeding the annual total for several years in the 1990s, the county is on pace to again surpass the 3,000 mark this year.  How these properties are effecting home prices is still up for debate.  Bill Hurt, owner of ERA Shields Real Estate in Colorado Springs said, "Most of the sellers, and institutional sellers (lenders), are still attempting to get true value for the property.  "They're not ‘firesaling.'  And the value is still there."  According to some real estate appraisers, many home sellers already have lowered their asking prices because of competition from foreclosed properties being sold at a discount by lenders trying to get them off their books.
http://www.gazette.com/articles/foreclosures_35030___article.html/price_differ.html

As housing falls, short sales becoming common, an article from MSNBC.com, reports that according to a real estate industry survey released last week by Bethesda, Md.-based Inside Mortgage Finance, and Washington, DC-based Campbell Communications, roughly 20% of all U.S. home sales in March were “short sales.”  Guy Cecala, publisher of Inside Mortgage Finance said, “Our numbers suggest that 20 percent of completed home sales nationwide are short sales.  The number would be larger if it weren’t for the fact that one-third of all attempted short sale deals don’t go through.”  The IFM/Campbell research also shows two-thirds of short sales are initiated by homeowners and one-third are launched by mortgage lenders as an alternative to foreclosure.  The study indicates the top reason for short sales initiated by homeowners is their inability to make mortgage payments, followed by other factors such as the decrease in value of the property.  Tom Popik, a Campbell Communications research partner who worked on the study said, “The amount of time a lender can take is one of the most important things the consumer needs to know.  Any buyer looking at a short sale property should find out where the seller is in terms of discussions with their lender.”  He added that if a buyer is patient, they could get a good deal on a home.
http://www.msnbc.msn.com/id/23997412/

Additional articles that you may find of interest:

Local market better off
http://www.csbj.com/story.cfm?ID=19756

Foreclosure crisis fix faces murky future
http://money.cnn.com/2008/04/07/news/economy/house_response_Sentatehousing/index.htm?postversion=2008040806

Open House Secret Formula
http://realtytimes.com/rtpages/20080408_openhouse.htm