“The number of homes changing hands went up more than 5 percent, from June a year ago to last month” writes Erik Andersen in his recent article titled San Diego Housing Market On The Verge Of More Foreclosures.

Although home sales are up there is still a major risk of foreclosures hitting the market, "If they trickle out over two years, that's a lot different than if we get a big sudden surge in the second half of this year," says Andrew LePage of Dataquick.

When looking at the number of home sales involving foreclosed homes there has been some improvement since last year, however the numbers are still much larger than normal. “LePage says nearly 34 percent of the region's home sales last month involved foreclosures. A year ago, it was more than half.  The percentage hovers in the single digits when the market is considered to be in balance.”