What’s amazing is that we had 1200 foreclosed homes in Dec. and I think less than 1000 actual sales. If Jan. has as many foreclosures, then they will likely outpace sales again.

Are we really going to see a situation where “must-sell” foreclosed homes consistently outpace actual sales?

It can’t happen- “must sells” must sell, so the number of sales must eventually at least be equal to the number of must sells. (that makes sense, right?).

What this tells me is that we are getting close to a tipping point. I think Chula Vista is already experiencing it. The “must sells” must all get down to a market clearing price, which is obviously far lower than today’s price (since inventory is building, not clearing). I think we are not far from seeing them back at rental value in some markets, and if the foreclosure pace accelerates, perhaps even priced lower (after all, just how many investors can there be?)