Two-thirds of home sales are either foreclosures or banks taking a loss (short sales). Of the remaining 36% only 10% are the result of the usual selling process nationwide. Foreclosures set a new monthly record (July) of 360,149 properties or about six times higher than four years ago. As the chart above shows there is a strong correlation between job loss and foreclosure: about one foreclosure for every 6-10 jobs lost. There are some half million bank owned homes not yet on the market. More foreclosures are ahead as the option ARMs and Alt-A loans reset rates next year.source: John Mauldin,www.marketoracle.com