What are Short Sales doing to the Real Estate Market?

Short Sales are on the rise taking up about 8% of the inventory.  In 2008, they were about 3% of total sales. They sell at about 21% discount, which is HUGE.  So, if you have the time, patience and ability to walk away, these are a great deal. They are decreasing home values.  Because there are so many of them, appraisers have to take them into consideration.  If I was thinking about selling, I would do it now and get in front of the short sales and foreclosures (shadow inventory) to come.