Recently USA Today posted a report on buyer activity starting to increase in the big real estate bubble states of California, Arizona, Florida and Nevada.  This is an indication that the banks are finally learning how to deal with this real estate mess.

When the bubble began to break two years ago the banks pretty much stayed in denial about foreclosures and tried to get the amount of the loan out of the properties.  Now they are finally getting to the point of putting prices that reflect a market value.  Some areas are actually starting to see multiple bids on properties.

This will really take effect in the bubble markets and will eventually seep over to the markets that did not have a real bubble.  This means that there are deals to be had in real estate and that people who have been able to pay their mortgages while the value of their home drops should see home values come back in the next two to three years.