The money quote:
Nationally, the housing market is in the process of transitioning to more stability in sales and home prices. Inventory levels are reasonable again, and even tight in some markets. The share of REO sales is declining due to an increased use of foreclosure alternatives to resolve distress.
Short sales, modifications and other foreclosure alternatives are playing a larger role than in years past and the flow of new foreclosures is declining with an improving economy. Home prices are benefiting and, having found the bottom of the chute as the Memorial Day weekend approaches, are ready to establish a foundation to climb the ladder.
On the local scene, CoreLogic shows distressed homes accounting for 39.7% of March sales in the Chicago metro area, and a 24.4-month supply of distressed homes. Chicago has the second largest months-supply of distressed homes among the 25 largest metro areas.