Despite conditions, now may be the time to sell

While most reports say that current conditions may favor buyers instead of sellers, some housing experts say that now may be the best climate sellers may see for some time.

According to the Los Angeles Times, housing consultant Steve Harney says that sellers will face significantly more competition in the coming months, as the recovering economy gives banks the confidence to put their stockpile of Houston foreclosures on the market, making it harder for sellers to compete on price.

Harney told real estate agents in Illinois that the flood of bank-owned properties may cause prices to drop an additional 5 to 8 percent, as the discounted properties become more available, according to the Times.

At the same time, the paper says Harney said that the current conditions may also be the best for buyers, as interest rates have continued to rise over the past several weeks.

However, not all local homebuyers will be looking at foreclosures. A November report from Campbell Surveys and Inside Mortgage Finance found that 30 percent of potential buyers told real estate agents they didn't want to look at foreclosure properties.