This may sound really mean, but more short sales on the market would suit me. Rentals in certain areas of SD work fine (we’re not dealing with things like 30% vacancy rates in Phx — I rented “that” condo ~3 days after renovations were completed, to a very cool med student interne), and not everyone has the intestinal fortitude to deal with a bank as middleman/referee in a short sale.
Frankly, this is looking a lot like what happened after the 2009-10 housing tax credit expired.