CLARKONOMICS: New foreclosure data shows that the 4 states with the worst situations are Nevada (where 1 in every 54 homes is a foreclosure), California, Arizona and Florida. Rounding out that list is Colorado, Georgia, Michigan, Ohio, Massachusetts and Connecticut. Meanwhile, the nation is facing a record high number of vacancies with 3 out of every 100 houses going empty. Unfortunately, REO properties (real-estate owned) are notoriously unkempt and invite crime of all kinds.

In related news, Dow Jones recently reported that the Miami/Ft. Lauderdale area has 3 years of backlog inventory to burn through. That's if another house never went on the market again! Only 3 markets are doing well by any standards. Seattle, Houston and Dallas each only have a 6-month supply of housing for sale.

So here's the good news: This is a great time for buyers (especially first-time homebuyers) and renters. Affordability is coming back to the market after going AWOL for years.

About 10% of rentals are vacant, which means that you can steal a deal as a renter. Try to shop around about 4 months before the end of your current lease. The greatest hazard and opportunity alike is in renting from an involuntary landlord who can't sell. They usually just need the money and don't know much about maintaining a property. But you'll get cheaper rent than in a traditional rental complex. The danger comes if they stop paying the mortgage and go into foreclosure. Then you'll be out on the street too.