According to an article in the Orange County Register that 12% of the entire housing inventory is in distress.  Short sales and foreclosures in Orange County account for 12 percent of the active inventory and 15 percent of all escrows opened within the prior month. The index used shows the inventory - to selling ratio continuing to erode. By this index, it would take 15.17 months for buyers to purchase all of the homes for sale at the current pace vs. 14.73 months two weeks earlier and vs. 7.10 months a year ago.

 With going into the traditionally slowest time of the year (November – January) I expect the inventories number to grow between now and the beginning of next year.