G,
I’m not sure exactly what your question is. If you could clarify more, I’ll do my best to answer. With that said, once the property reaches the right level it generally sells within 1 to 3% of asking price. Many properties start out way to high and it takes time to get them to where they should be.

JJ,
That’s a tough one and one I’ve been trying to get my brain around also. My current hypothesis is that it will keep very low sales inventory and hence very low sales volume. This will create some pent up demand and many frustrated buyers unable to find anything worth buying. This could help keep the distress prices up for quite some time. If you look in those better areas there are still very few properties with NOD’s filed. Today’s NOD’s are potential REO’s in 9 to 12 months. This tells me, we are still a long ways from widespread REO sales along the coast at least 18 to 24 months IMO.

It is defintely a bit of dilemma and one I havent figured out yet.