I can only respond for my area, Greater Danbury, but so far this year there were 534 sales of single family homes and condos, of which 19.7% were distressed. 15.2% were bank foreclosures, and 4.5% were "short sales". I know that many people have been frustrated with short sales for the past two years, however, they are getting easier and they are also closing much faster.
It is really important that homeowners in difficult financial straits be aware of this, and also the CT State foreclosure mediation program. Here is a blog post about it for further details.