Thanks for the insight. Sure – anything that sells, IS market value. Clearly there are homes/condos that sell below the price that recent sales history would suggest…hence, below market value. Perhaps I should use the term, “priced below what others homes like it recently sold for.” Then again, that’s not very catchy…any suggestions?

I agree with you that home values won’t rise until short sales and REOs are priced the same as non-distressed home, but I think we’re close. There are recent statistics that show increased home values and increased sales activity. Most importantly, as one of my investor clients said, “the market is turning but will take several months to evidence this.”

I have to wonder if we won’t see the end of the real estate price fall until short sale prices are in line with comparable non short sale prices. Especially where the short sales are pre-approved by the bank.