Last year the amount of overall forclosures was down, but this year they are rising and expected to continue to rise.
I think that Real estate is always a good business to be in and there definately is money to be made despite the crunch, but people just have to learn to adapt to the new market. There is still money to be made, just in different ways.

Since last year the amount of forclosures has risen 97%, that is just staggering. The cost of homes will be decreasing as bank owned properties flood the market. Try smaller banks, if you are trying to invest in multiple properties. You can get much more of a discount this way.

How long do you guys think that this trend will last. Ive heard some estimates saying at least 3 years. what do you guys think?

I believe it will most likely take a minimum of 3 years. This subprime problem is a huge issue that is going to affect alot of businesses, not just real estate. Its going to be much tougher to get loans and if the democrats take office we will get a raise in taxes. The real estate market is cyclical and usually can operate on a boom/bust cycle of 8-10 years. It may be a long lasting ride.