It’s going to get worse before it gets better, but there is apparently a shimmer of light at the end of the national housing market’s long, dark tunnel.

Beginning in 2013, home prices are projected to increase a modest 1.77 percent, according to a survey conducted by MacroMarkets LLC, which is based on the S&P/Case-Shiller index over the next five years. In the foreseeable future, prices are expected to continue to decrease 2.53 percent in 2011 and .13 percent in 2012.

Overall, prices are predicted to grow on average 1.1 percent through 2015, according to the study, which surveyed 111 real estate experts and investment/market strategists, among others, to arrive at its conclusions.

Robert Shiller, MacroMarkets cofounder and Yale University professor of economics, explains the possible reasons for the slow growth:

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Nasser Daneshvary, director of the Lied Institute for Real Estate Studies, explains the scientific formula that he has discovered regarding the toxic effects of foreclosures on neighborhoods in a recent sit-down with the Las Vegas Sun.

Here’s the snip:

“We know foreclosed homes sell for a discount, but what do they do to the neighborhood? We found out that the first few foreclosures have a big effect, and then five and six and seven don’t matter, and then eight, nine and 10 matter a lot. The negative effect on your value keeps declining until it reaches around 40 homes within a half a mile from you. You have lost 33 percent. More than that doesn’t matter.”

To search foreclosed homes near you and see them all on a map relative to your house click here.

Get ‘em before they’re gone!

CNBC Real Estate Reporter Diana Olick today reports that bank-owned foreclosures (also known as REOs) and short sales — both of which fall under the distressed real estate umbrella — accounted for nearly 50 percent of all home sales in Dec. 2010.

The 47 percent share is up from 44.5 percent in Nov. 2010.

Low interest rates, as well as delayed sales agreements that were finally pushed through after “robo-signing scandal” concerns were alleviated, are the primary reasons behind the major spike.

Thomas Popik of Campbell/Inside Mortgage Finance explains:

“There were signed purchase and sale agreements, and those closings were delayed until the paperwork was reviewed. The major servicers pulled from the market houses that had been listed, and buyers were found. Once those transactions went back on, then they closed, and that’s what bumped up these December statistics so much.”

Keep in mind that home sales are typically down during the holidays, which makes this news even more remarkable because real estate business was actually up 12.3 percent (seasonally adjusted) to close 2010.

To search foreclosed homes and short sale listings for sale in your area click here.

Be sure to hurry … the distressed real estate market is fast and furious. The best deals don’t last long!

About 27 percent of American homeowners feel that prices will continue to drop in 2011, according to a Gallup poll conducted earlier this month, which is compared to 21 percent who feel they will finally begin to increase.

Check out the graphic below, entitled “Expectations for Average House Prices:”

Consumer confidence and attitudes are often telling indicators for if, and when, markets will rebound, correct and/or continue on their current trajectories.

This is “good” news for potential buyers and investors — great real estate deals could possibly get better in the months ahead. Historically-low interest rates and other buyer-friendly conditions, however, could start retreating to so-called “normal” levels sooner rather than later.

For buyers looking to push their chips into the middle of the table at the right time, this is turning out to be like a game of chicken. When do you flinch and go “all in” on the house of your dreams?

Each case is different, so there probably isn’t s silver-bullet answer to the age-old question of when to buy. Keep in mind though, that the line is getting finer by the month. And when the correction comes, it will likely come hard and fast.

Don’t be the one on the outside, hanging onto your bag of chips and kicking yourself for not acting sooner. Watch your local market, sign up for our free property email alerts and stay on top of things as best you can.

It will likely payoff in the end … literally.

… according to John Taylor, president and CEO of the National Community Reinvestment Coalition, who tells CNBC.com:

“Foreclosures are the mortal enemy to economic recovery. We can keep on pumping money into the system to create liquidity for banks and in the market, but it’s simply not going to succeed until they plug the hole at the bottom of the well!… If we do not respond to the foreclosure crisis now, we can guarantee the pain that will be felt by most of the people in this country. Families facing foreclosure don’t want a handout, they just want reasonable help. In fact, most of the people that got bad loans, perhaps 90 percent of them, are still paying on that sub-prime loan. Some of them have just simply fallen behind…. If we don’t do restructure their loans and keep people in their homes, property values will drop and everyone will be impacted who owns a home. We need to share the pain now, because otherwise it will affect us more broadly…. The federal government must mandate that the private sector modify certain loans such that they match the borrowers ability-to-pay. Voluntary compliance simply has not and will not work. These new loans should match the incomes of the borrowers so that a responsible borrower has a sustainable loan. Those who have lost their jobs should be given a reasonable period to find suitable employment, and if unsuccessful, have the time to pursue other housing options.”

Does Taylor present a realistic solution to the foreclosure crisis, which he says could balloon to 11 million bank repossessions if the economy continues on its current trajectory, or is it too “pie in the sky?”

To read his entire case for overhauling the current system click here.