Short sales and foreclosures made up 52 percent of all recent Southern California home sales -- Lenders aggressively pricing lower-end properties to move. Two Pasadena examples.

"If you want to get a sense of what banks are doing different in 2012 look no further than short sales and REOs. I track MLS data carefully in Southern California and all of a sudden you are seeing a movement of recent listings priced to move in short sales and REOs. This is happening with lower-end properties but of mid-tier markets. Is this a prelude of what is to come for the rest of the year?"