Great question. I have noticed the new listing inventory of foreclosed has been shrinking, while the short sale inventory has continued to grow. New pending sales numbers match new listing numbers for the region for the first time in years.
With supply and demand moving towards a ( temporary ?) equiibrium, one would expect an end to the decline of housing prices. What happens when the values are reported as stable or rising?
Normally, I would predict that more people would jump into the market to create more demand. This will probably not be vigorous until we see an improvement in the employment picture as well as the decrease in available homes for sale.
New accounting rules allow banks to avoid writing down their bad loans, until after foreclosure is complete. This gives them a really strong incentive to not foreclose, but to leave homeowners or tenants in the defaulted homes. In other words, the "official" moratoria are being replaced by unofficial moratoria.
The banks (and everyone who wants the economy to recover) are hoping that we can just all wait out the recession for monhts, perhaps years, and enough borrowers will recover enough financially over the long run that the level of new foreclosures will drop down to a historically average level.
In summary, my opinion is that there will be no deluge of new listings in any one month.