Bank Repo's shouldn't flood the market.

From where I sit 40 foreclosures dosen't sound too bad. Here in Lee county Fl, with a population less than Pierce Co Washington, there were 120 foreclosure sales at the courthouse today, more scheduled for tomorrow, and still more on Friday. We've been going at that pace for some time now with no let up in site. Foreclosures are our market or at least 65% of it. So maybe my comment wont apply to your market at all, but ..I dont think it matters if they trickle in the listings or if they come all at once. The market knows the homes are  there and that they are bank owned and that they will be sold sooner or later. The effect on market price has already happened. .....Actually I think your market and the owner would be better served if they come all at once. if they trickle them into the market, I bet each batch gets sold at lower prices, draging the overall market down with it

All the reports say that the Phoenix area has a lot of pend up pre foreclosures ready to come trickling out onto the market.

Hmm. Thats a tough one to figure out. Although it doesn't seem to make sense to flood the market, which usually serves to force more price reductions... from the standpoint of the bank, regardless of whether they are on the market or in inventory, they are non-performing assets. Seems to me the best thing to do would price aggressively, get them out there, get them gone, and move on.

You should post this question to REO, REO Realtors and/or the Foreclosure groups for more feedback. My area has to few REOs for the banks to be holding back but I am curious on which bank it is.

In Greater Cleveland Ohio, it depends on the market.  I think with the Alt-A mushrooming problem, the negative equity, high-inventory levels, those that must sell and have purchased in the past 4 years, will keep these short sales and also foreclosure sales in the pipeline for the foreseeable future -- and this is what I see experientially here in Cleveland.