There might very well be a change in housing inventory over the next few months which could help home values slow their pace. According to RealtyTrac, the housing data firm, banks have been more aggressive in their foreclosure activity over the past several months. The data concluded banks haveBank Owned Homes either sent notices of default, repossessions and scheduled foreclosure auctions at a rate not seen in two years.

This is a sign banks are making a final push to get rid of as much of their distressed portfolio as possible instead of trying to work out repayment agreements or letting homeowners who can’t or won’t pay stay in the property. Now that home values are on the rise and equity has returned, banks can sell a home without a short sale in many areas.

RealtyTrac also reported that bank repossessions were up more than 80% compared to the same period last year. What this means for real estate investors is there are or will soon be more foreclosures on the auction block and less inventory in a bank’s REO department. At the same time, as that inventory is eventually sold, the opposite will be true. There will be fewer such opportunities available. When you also consider interest rates still being very, very competitive, it’s an ideal time. The only drawback might just be that too many investors will bid on the same property, driving up the price which wouldn’t otherwise be the case.

When a bank-owned property is listed for sale, the bank wants to get as much out of the property as possible but make sure the home is quickly taken off its books. If multiple bidders compete for the same pool of inventory, cash flow will naturally shrink. There will be more bank-owned homes on the market in the very near future, just be careful with your bid.