I started tracking REOs and short sales 6 months ago. It is alarming how consistently they climbed month after month. I do not remember any time in the history of SD real estate that REOs and short sales account for over 50% of all sales. This phenomenon is so negative, but ignored and under appreciated by analysts, economists and the media.

For units sold, REOs and short sales combined for 51.7% of the total market in January, up sharply from 6 months ago (about 20%). Clearly the San Diego market is starting to be dominated by REOs.
http://bp3.blogger.com/_pMscxxELHEg/R6TJymQ3QNI/AAAAAAAABkU/T7nxAZ6eVMQ/s320/REOPrevalence.jpg (http://bp3.blogger.com/_pMscxxELHEg/R6TJymQ3QNI/AAAAAAAABkU/T7nxAZ6eVMQ/s1600-h/REOPrevalence.jpg)



http://calculatedrisk.blogspot.com/2008/02/san-diego-reo-prevalence-above-50.html


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Interesting.