Foreclosure activity is historically high. In the zip code 92544 there are currently 204 bank owned homes, 292 homes that are in foreclosure with auction dates set, and 276 homes with mortgages 60 or more days late, but that are not in foreclosure. In the MLS, there are 58 unsold bank owned listings which suggests that 71.6% of all bank owned homes are not being actively marketed.
In my opinion, these statistics indicate that future declines from foreclosure related sales are possible and that banks may be maintaining properties off of the market, presumably to influence market stabilization, and property value statistics may not be credible as they may not reflect natural market forces. Also, the recent surge in property values may be due to a reduction in the ratio of bank owned property sales and not an actual increase in property values. Bank sales tend to sell for lower values because the sellers are more distressed than typical sellers and because they are the most likely properties to be in sub-average condition.