The more foreclosures, the deeper the discounts of price

First American Real Estate Solutions;

“The prevalence of foreclosures and the depth of discounts can be correlated,” said Cagan. “Discounts tend to be deeper in markets where foreclosures comprise eight percent or more of all sales, regardless of geographic location or market type.”

Among the areas with few foreclosure sales and little or no foreclosure discounts during the first half of 2006 were Arizona, Nevada and Virginia.