Note: I have added a foreclosure research link to the site, see here.
Here are the sales breakdown for the San Fernando Valley and Ventura County for May 2009. Distressed sales are still the majority of sales and the short sale component of distressed sales are slowly gaining strength. Foreclosure / REO sales have declined as a percentage of sales the past 3 months with Ventura County dropping especially far. Watching the weekly inventory chart and the distressed sale to pending sale ratio we have seen a particularly large drop in Ventura County for awhile now so it is no surprise to see REO sales weaken. The fact that sales are even this "good" (historically very low but it could be much worse) suggests that there are at least some normal (equity, probate or investor) sellers pricing realistically. The initial surge of demand caused by ultra-low rates and the new tax credit has just demolished inventory on the MLS on the low end. With lenders still not being aggressive taking back inventory these supply issues should continue for awhile and so sales should be muted. If rates spike again (the bond market had another bad day today) and stay in the 5.5%+ range it will really put a cramp in the markets rally. These numbers are preliminary and should increase about 10% over the next 10-12 days due to late reporting.