As we say goodbye to 2010, it's time to look into this new year with rose colored glasses, but let's temper that optimism with some reality mixed in. In 2010, some of our beach markets saw foreclosure and short sales (collectively referred to as distressed properties), dominate their market. For example, West OC saw 46% of their 2010 sold properties in the distressed properties category. In Berlin, it was slightly higher at 58%--and Ocean City proper came in lower at about 20-25% of the properties sold in 2010 being distressed properties.

As buyers, we say, "Find me a bargain!". But as a seller, or at the least, homeowners interested in their still diminishing property values, we say, "Stop the bleeding!".

Call me an optimist, but I am predicting a decrease in the amount of foreclosures in our area towards the latter part of 2011--as the investor heavy communities weed through those homeowners who didn't have much to lose by letting their property go, we should see a decrease in the amount of foreclosures. I have also seen an increase in homeowners successfully reworking their loans under the Home Recovery Act, thereby preventing more foreclosures. And, consumer spending data is showing a growth trend. Our tourism was on par this year, making businesses more optimistic for the future, and some new jobs came to our area.

Let's hope the figures prove my prediction correct in 6-12 months time! Can't wait to check back in.

Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.