From our friends at Calculated Risk comes a chart showing the percentage of listings in San Diego which are either banks sales (REO's) or short sales. They now total well over one-half of all listings. 

Clearly in San Diego, the valuation of troubled listings will have a major impact on valuation. By contrast, in the 96753 zipcode which includes Kihei, Wailea and Makena, fewer than 1% of  all listings are foreclosure related. In our market, they are almost irrelevant to valuation.