It is yet early, many properties, even distressed ones, held out over the summer in hopes of a sale. It also takes several months for a NOD to turn NOT and then a bit of time for a REO. Mortgage tightening is only starting to make it’s impression now, as those who now MUST refinance or sell are finding out. Also, a new wave of resets is just hitting, which will take it’s toll in the months to come.
And people are finally going back to school which takes attention off the RE market.

Relax guys and gals, it is still very early in the game. Save your pennies, a house at a decent price is yet in our future.