savingforahouse, that sounds like a promising chart to make, although I don’t know how much of a leading indicator it would be. Anything that adds to inventory, whether it is job loss, divorce, foreclosure, overbuilding, puts downward pressure on prices.
If you were to look at the number of foreclosure in a neighborhood to get a sense of excess inventory, why not take it further and look at unemployment and overbuilding by neighborhood? San Marcos had more overbuilding than Poway, so San Marcos has more downward price pressure than Poway, etc.
I noticed that the lower income areas have more foreclosures.