I did a quick search of the lowest priced properties to sell in my market (Daytona Beach, Fl) and I was surprised at what I found.
I searched the MLS for all properties sold and sorted out the bottom 30 as to whether they were bank owned, short sales, or "regular" sellers. Not all bank owned are coded as such, so it took some time to figure out or I would have used a larger sample.
I found that at the bottom of the market:
93.3% were REO.
6.7% were regular sellers.
0.0% were short sales.
I am sure this does not ring true throughout different price points in the market. If you can easily search this in your market, please post the findings. I would like to see if this is true in other markets. Our general market has declined about 17% in the last 12 months.