The price difference between a foreclosure and non-distressed sale is getting smaller, according to new analysis from Zillow.
In September, the nationwide discount for bank-owned properties compared to non-foreclosures was 7.7 percent, Zillow reported. In September 2011, the foreclosure discount averaged 9.1 percent and in August 2009, foreclosure discounts peaked at 23.7 percent.
The discounts can vary greatly from metro-to-metro, but discounts seen across most
Nationwide foreclosure discounts peaked in 2008 and 2009, and some areas offered discounts that exceeded 30 percent.
Major metro areas where significant foreclosure discounts can be found include
On the other hand, several hard-hit metros offered little to no discount.
Foreclosure discounts in
“The smallest foreclosure discount is found in places where competition for homes is so high, people there are willing to pay the same amount for a foreclosure re-sale that they would for a non-distressed home simply to take advantage of historic affordability,” said Zillow chief economist Dr. Stan Humphries. “Additionally, in areas such as
By Esher Cho