The chief economist of the National Association of Realtors told reporters recently that foreclosures no longer are such a drag on the market because there are multiple bidders for such properties.

Lawrence Yun said that a year ago, foreclosures were pulling down home prices. But now, because demand for distressed properties is so high, they no longer damage prices and won’t derail a budding recovery in the housing market.

Yun forecast that U.S. home prices will increase 3.6% in 2010.

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