Homebuyers could be seen flocking on areas where there are high Bank Foreclosure Listings. Encouraged by below market values, $8,000 federal tax credit for first-time homebuyers and low interest rates, more and more people are vying for foreclosure properties as aggressively as speculators during the peak of the housing market.

The flock of buyers could be seen in areas hardest hit by the foreclosure crisis, including counties of San Bernardino and Riverside in Southern California, Las Vegas in Nevada, South Florida and Phoenix in Arizona.

Already, multiple bids are common occurrence as buyers try to compete for properties on Bank Foreclosure Listings that are priced 50 percent below their original value.

According to data, properties on Bank Foreclosure Listings accounted for 40 percent to 80 percent of the inventory, with many of them sold at prices that were only enough to cover the construction costs.

Industry experts said that homeowners who want to sell their properties may find it difficult to compete with bank owned foreclosures.

According to the National Association of Realtors, distressed properties accounted for one third of the total sales in May which affected the median price of existing homes in the United States. The median home price dropped by 16.8 percent to $173,000 compared to previous year.

In 2008, sale prices in top real estate foreclosure markets declined by almost 30 percent based on several first quarter estimates, with Miami, Florida leading the sale price drop.

Meanwhile, properties in Bank Foreclosure Listings in counties of San Bernardino and Riverside are selling at prices comparable to the year 2000 values, while foreclosed homes in South Florida and Las Vegas are priced similar to that in 2003.

And recovery in the housing market is far from coming what with the projected second wave of foreclosures as unemployment rates continue to increase and higher resetting of adjustable rate mortgages are expected to further push down home prices.

According to industry experts, there are many qualified buyers for properties on Bank Foreclosure Listings in areas hardest hit by repossession, adding that most of them are willing to buy foreclosed homes more than their listed price.

And it is expected that banks will soon bring out their large backlog of property inventory that will continue to keep home prices low.