Price Differences Between Foreclosures and Non-Foreclosures

Zillow's Chief Economist, Dr. Stan Humphries, has called foreclosures and non-foreclosures two distinct markets - a comment that set off some debate in a previous blog post.

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: