Hello BP,I know in today's market pre-foreclosure niche is waaaay saturated (Bay Area Market).

In myOpinion it is over saturated with flips if you look at how many renovated houses are sitting on market there.

For one our buy-in is more conducive than other more saturated markets.

When your local markets become this saturated it's best to go out of state. 

At the same time I would think,it's saturated with investors and dried up.

Flipping is going..it's definitely happening all around me so it feels a bit saturated.

I'm not a wholesaling expert so take this with a grain of salt, though I would think mailing to a zip code with high cash sales probably would mean that that area is pretty saturated with other wholesalers/ investors as well, so I imagine competition via that strategy may be pretty tough.  

In this case does this mean that the market that I have selected is getting saturated and getting foreclosure properties lower than the market rate is not possible?

Location Location and Location and demographics, saturation, doors available in the area for rent, absorption, economic impact, job resources, and so on.

The market was way too saturated, but a smart investor who knows how to find sellers correctly could have done great in that market.