The recent housing crash seems something like a modern-day “Trail of Tears.” Millions of Americans forced out of their homes for failing to make payments on assets they couldn’t afford to begin with or can no longer afford because they have lost their jobs.

It is a tragedy whose plot line is lived every day by thousands of Americans. The suffering inflicted by short sales and foreclosures on a daily basis is incalculable.

Thankfully, it appears that the acceleration in foreclosures has finally stopped and that the trend is reversing, even amid an economy bleeding jobs. This is in no small part attributable to to the savvy investors and  first-time home-buyers who have put a floor in the market by absorbing housing inventory through real estate auctions.

More bearish market commentators claim that recent good news in housing and foreclosures will be undermined once banks fully disclose the number of foreclosed homes they own – homes which haven’t yet come up for sale. They will be proven wrong. Recent attendance of real estate auctions – whether virtual or in-person – is at a record peak. In fact, some housing experts argue that recent signs of price improvement in certain markets is attributable to the high demand for homes that is being witnessed at these auctions.

And why shouldn’t there be high demand? Prices in many desirable areas have fallen more than 50% from peak to trough, putting rental yields on properties – hard assets – well above the yields investors are homeowners might find on bonds, which can’t be lived in.

Urban condominium properties in particular represent a compelling opportunity for buyers or investors. First, urban markets are most likely to benefit in an inflationary environment, as foreigners purchase second and third homes to take advantage of a weak dollar.

Second, urban areas will experience an accelerated recovery versus other areas, as urban center will likely fuel  the job creation that puts the economy back on track.

Third, prices in some cities like Miami and L.A.  have been hardest hit because of the tremendous short-term overcapacity built by developers who now need to exit their projects as quickly as possible to make their own bondholders whole again. And fourth – call us partial – urban markets may just be more fun to live in.

While the recent downturn in housing has had a negative impact on many peoples’ lives, there are signs of real improvement. This improvement is provided by the once-in-a-lifetime opportunity for buyers to scoop up plush penthouses at bargain basement prices.

Whether or not the government’s response to the financial crisis and the recession was appropriate, one thing is pretty much certain: with the federal deficit at a record high and showing no signs of decelerating, the Treasury will have to print a lot of dollars to make good on those debts, inevitably putting downward pressure on the dollar and leading to inflation.

These conditions are significant and create a one-in-a-lifetime opportunity for real estate buyers and investors. Those who buy condos at condo auctions will benefit – even through a protracted recession – in a number of ways.

First, buying at auction provides buyers the opportunity to buy properties for well below even current market values, giving them a substantial cushion on their investment. Next, the historically low interest rates employed by the Fed as a response to the recession has created cheap money for those with good credit and good jobs with which to buy assets.

When inflation is finally realized and the dollar weakens as bills roll off the press, today’s buyers will be rewarded with an asset that will appreciate as foreign investors seek investments and second and third resident’s in our country’s desirable urban markets – a trend that was observed during the last housing boom. In addition, a protracted recession and increased unemployment will force more Americans to rent in the near-term, especially in job-creating urban markets.

With rental yields on urban properties at near-record lows, there is little downside risk to rental rates and a very bullish case to be made for rent increases – increases that translate into higher yields and much higher returns on an a good investment.

Signs of a bottom in housing are beginning to emerge. New home sales are up for the last three months. Prices have increased in urban markets. And major housing economists have turned bullish. Once the evidence is too compelling, the opportunity to buy great properties at steep discounts at condo auctions will have passed. Those who are most handsomely rewarded will be rewarded for taking risks before the rest of the herd.

Buying at auction is easier than most would imagine. A list of properties is usually published well in advance and open houses are held so that bidders can inspect the properties first-hand. When an auction date is set, bidders can place maximum bids so that they need not bid live, or bid live in person or online (depending on whether the auction is live or online).