Market Report! Mission Viejo short on REOs!

I have noticed that the lower priced detached homes are not going down in price in Mission Viejo or Lake Forest CA. In the last 2 months there has not been many REOs available which would of made the bottom line lower. We have within the 2 cities 542 houses total available today and only 23 of those are REOs, that means that less than 1/2% are Lender owned properties. The news media doesn't look at each city and see that we are getting better.
Now looking at sold properties for Nov. and Dec., total sales were 327 and of that amount, lender owned was 127. This equals 38% that were sold were REOs. That is a huge percentage. I read conflicting reports on lender owned properties saying that the lenders are holding up foreclosures and settling with the owners. Some reports state there is no rush of REOs coming on the market in the near future, while other reports say we will have a big wave in the next two months.
I know when an REO comes on the market that within the first few days it will have multiple offers on it. There are more buyers for this type of sale than there are properties. Buyers prefer REOs because the lender wants a quick escrow and buyers know short sales could take months till you close. Short sales only close 1 out of 5 transactions so buyers stay clear of them if at all possible.