Property values have fluctuated throughout the past year but overall values have increased 5.6% which indicates a stabilizing market, not an appreciating market, given the reduction in the number of bank sales in the area compared with a year ago, in my opinion. The Demand/Supply trend is Shortage with 1.5 months of current inventory. The marketing time trend has been under 3 months throughout the past year. 29% of all sales over the past month were bank sales and 65% were bank sales during the same period last year. There are currently 193 bank owned homes, 213 properties that have received a notice of default, and 178 additional properties that are currently in foreclosure with an auction date set. Based on the number of bank sales over the past 30 days there are 9 months of bank owned inventory and 18 additional months of potential bank owned inventory from properties with mortgages that are 60+ days late. Based on these foreclosure related statistics, the subject's market area is among the most negatively affected in San Diego County by the recent national mortgage crisis and future declines from foreclosures are possible. These statistics do not include any properties with mortgages over 60 days late that banks are not filing notices of default on which is an unknown number of properties.