Home buyers hoping to snag a really good deal on a foreclosed home are finding it increasingly difficult because supply is shrinking.

The number of foreclosures that are available for sale nationwide fell to 617,000 in December, down from 845,000 in November 2008, reports Barclays Capital.

Not only have attractive homes in popular neighborhoods already been snapped up, but also government help for distressed buyers is delaying more foreclosures.

Demand is driving up prices. Investors say typical prices have climbed from 75 percent of appraised value to 85 percent or higher when there are bidding wars.

A 30 percent drop in foreclosures puts the Philadelphia region 82^nd on a national list of 100 major metropolitan areas. The eight-county region had 3,064 filings in the first quarter of 2008, a 29.64 percent drop from the same period a year ago. Nationwide, filings increased by 112 percent over the first quarter in 2007. For a more detailed report on Philadelphia foreclosures, please see the Philadelphia Inquirer article.