This should be no surprise after Fannie and Freddie announced record REO sales in Q1. And we should see a high level of REO sales all year (putting pressure on house prices).
Note: I've been following the Sacramento market to see the change in mix (conventional, REOs, short sales) in a distressed area. Here are the statistics.
Click on graph for larger image in graph gallery. This graph shows the percent of REO, short sales and conventional sales. There is a seasonal pattern for conventional sales (strong in the spring and summer), and distressed sales happen all year - so the percentage of distressed sales increases every winter. The tax credits might have also boosted conventional sales in 2009 and early 2010.
Note: Prior to June 2009, it is unclear if short sales were included as REO or as "conventional" - or some of both.
In April 2011, 66.8% of all resales (single family homes and condos) were distressed sales. This is highest level of distressed sales for an April since Sacramento started breaking out distressed sales.
A high level of distressed sales suggests falling prices, and this data from Sacramento suggests further price declines in April.