How will the moratorium on foreclosures affect the market? We expect there will be a housing shortage in the more popular neighborhoods as more sellers stay put and fewer foreclosures come on the market. That means prices may increase as buyers compete for the better homes. We have been advising our buyers to stay away from foreclosures for some time; the minimal discounts didn't justify the risks and now that risk is even greater if prior owners are allowed to take their home back.