Distressed home sales are at 7 year lows and foreclosure inventory is down 34% year over year (Source: CoreLogic).

Sales of distressed homes (REO and short sales) fell to their lowest level in seven years and foreclosure inventory dropped by 34 percent year-over-year in December 2014, according to CoreLogic's February 2015 "The MarketPulse" report.  You can read the full report at: http://www.corelogic.com/research/the-market-pulse/marketpulse_2015-february.pdf