Will foreclosures have a sustainable impact on home prices?

Short term..Definetly! Long term (more than two years) Definetly!

Here is why. Take the local market, Tucson, were there were 4,471 foreclosures filed in Pima County last year. This year, I believe we will surpass last year's mark and here is why.  Banks will not want to carry forward losses from previous quarters indefinetly.