...REOs keep piling on but now have begun selling in earnest. Deeply discounted off prior values, they comprise a formidable chunk of home sales. These are "pulling down prices," says Delores Conway, director of the University of Southern California's Casden Real Estate Forecast.
"Part of the effect of REOs is we've seen very steep and swift price declines," she said. "We may actually overshoot on the bottom. When prices stabilize they might actually stabilize around this level."...
