That debate prompted us to delve further into the issue, and today Zillow released a white paper called "Price Differences Between Foreclosures and Non-Foreclosures." It turns out that, in most markets, foreclosures and non-foreclosures do indeed constitute two distinct markets, with previously foreclosed homes regularly fetching much lower prices than non-foreclosed homes with similar attributes.
Here is the full paper:
Zillow's Chief Economist, Dr. Stan Humphries, released the following white paper today analyzing foreclosure home sales. I think you'll find it very interesting.
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