160% Increase in California Real Estate Foreclosures

According to an article in CNN, foreclosures are spiking everywhere. Nationally they are up 53% over last year but for us in California, the article states that there was a 160% increase in July 2006 vs. July 2005.

Can this be an indicator of a famous "bubble" or just a hiccup?

Remember, the NAR's July Existing Home Sales Report had this to say about the West...

Existing-home sales in the West dropped 6.4 percent to an annual pace of 1.32 million in July, and were 18.0 percent lower than a year earlier. The median price in the West was $348,000, down 0.3 percent from July 2005.

Will the California real estate market weather the impending storm or will this be a repeat of 89-91?