CLARKONOMICS: There is just so much opportunity in buying foreclosures and other distressed real estate at this point. But a few words of caution are also necessary.

The condo market in particular has a lot of hazards. For example, when you buy a condo, you're buying an obligation and a commitment in a condo association. Do not buy in a building that has been recently constructed. You want to look for established condo buildings that have been there 6 years or longer. With established buildings, you know that most people are paying their condo fees.

In fact, you should never buy early in any new development. If you do and the builder goes belly up, you could be living next to scarred earth that's been homogenized for development and looks just awful.

Meanwhile, in more heartening news, February data shows that the sales of existing homes went up 5% year over year.

Are you looking for foreclosures or distressed property in the single-family home market? You want to look for several things: An established neighborhood that's 10 years or older; a neighborhood where it's mostly owner occupied -- not rental; and a house that is structurally sound with cosmetic damage only.