I read the other day that 50% of foreclosures are limited to 4 states - California, Florida, Nevada and Arizona. I have noticed any changes to the number of foreclosures in my area based on the foreclosure list subscription service I subscribe to. I expect that real estate prices in those 4 states were driven by speculators who bought properties before they were even built.
The Wall Street Journal carried a story today that the bursting of the real estate bubble has put downward pressure on rents. The Buffalo area is losing people and jobs and so I would expect that there would be some downward pressure to reduce rents here as well. So far, I continue to receive calls about when one of my properties may come available. This despite no advertising on my part. I would guess that this is due to the "rent to own" homes concept that I have been using. Not having to worry about whether I can find tenants is a great stress reliever for a landlord.