Yep, you read that chart right, notices of default (NOD) are higher than house sales. Notices of trustee sales (NOT—Foreclosure auctions), and real estate owned (REO, basically no one would buy at the foreclosure auction) are skyrocketing too.
Truth be told, San Diego was one of the 10-20 most over heated markets in the country, but it's effects are nationwide.
You see accelerated NOD, NOT, and REO levels in places as "un-overheated" as Toledo, and you see people who have used their equity in overheated markets to make investment and vacation home purchases in cheaper areas, which inflate prices everywhere.
Fannie Mae and Freddie Mac, in particular, and the mortgage resale market in particular, have made real estate markets more national, and even global.
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