Realtor's Home Sales Numbers are Inflated
The volume of foreclosures and shorts sales has increased to 28% of all the home sold in 2010. This is up form 27% in 2009 and 20% in 2008. The share of REOs (foreclosures that are bank-owned) fell from 22% to 21% while short sales increased from 6% to 7%. Although this is a small shift in the type of distressed properties, it does have an impact on prices as short sales typically sell for more than similar REOs.
The supply of visible inventory is at 16 months in November 2010, the highest level since February 2009.
Link to the report: CoreLogic Housing Trends 2010.