Foreclosure Discount Falls to 7.7 Percent Nationally

             Foreclosure Discount Falls to 7.7 Percent Nationally

Pittsburgh and Cleveland Metro Areas Top List of Highest Bank-Owned
Foreclosure Discounts, According to Zillow Analysis

PR Newswire

SEATTLE, Nov. 9, 2012

SEATTLE, Nov. 9, 2012 /PRNewswire/ -- Homebuyers nationwide in September could
expect a discount of 7.7 percent when buying a bank-owned property versus the
same home in a non-distressed sale, according to a new Zillow® analysis.

The discount narrowed from 9.1 percent during the same month last year and has
fallen dramatically from a peak national discount of 23.7 percent in August
2009. Zillow compared the actual sale price of foreclosed homes nationwide to
the estimated price of the same home were it to sell in a non-distressed
transaction.

While foreclosure sales continue to offer buyers discounts over traditional
sales in the majority of metro areas, some of the areas hardest hit by
foreclosures are also those where the price gap between foreclosed and
non-foreclosed homes is the smallest. Areas with the smallest foreclosure
discounts in September were Phoenix (0 percent), Las Vegas (0 percent),
Sacramento, Calif. (0.7 percent) and Riverside, Calif. (1.8 percent), Zillow
found.

"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 Phoenix and Las Vegas, where not
long ago one out of every two homes sold was a foreclosure re-sale, buying a
foreclosure is no longer just for investors." 

Metro areas with the biggest foreclosure discounts include Pittsburgh (27.4
percent), Cleveland (25.8 percent), Cincinnati (20.2 percent) and Baltimore
(20 percent).

Year-over-year foreclosure discounts fell in roughly three-quarters (76.9
percent) of metro areas analyzed, and all metros are down from their peak.
Nationwide, foreclosure discounts reached their height in 2008 and 2009, and
in some areas peaked at more than 30 percent.

                                                      Foreclosure  Foreclosure
                Foreclosure  Foreclosure  Peak        Discount     Re-sales
                Discount     Discount     Foreclosure              Percent^i
                (current)                 Discount    Peak Month
                             (Sept. 2011)                          (Sept.
                                                      (Month/Year) 2012)
United States   7.7%         9.1%         23.7%       September    13.4%
                                                      2009
New York, NY    15.5%        18.7%        30.3%       August 2009  --
Los Angeles, CA 4.2%         9.7%         24.8%       August 2009  17.1%
Chicago, IL     11.9%        15.5%        28.0%       December     --
                                                      2008
Philadelphia,   14.4%        18.6%        27.0%       August 2009  6.6%
PA
Washington, DC  5.5%         8.2%         22.2%       October 2008 8.6%
Miami-Fort      2.9%         6.8%         22.7%       August 2008 --
Lauderdale, FL
Atlanta, GA     7.8%         13.5%        28.0%       October 2008 --
Boston, MA      15.1%        16.5%        29.1%       December     --
                                                      2008
San Francisco,  4.7%         8.9%         20.4%       January 2008 15.8%
CA
Detroit, MI     15.2%        16.5%        30.0%       April 2008   --
Riverside, CA   1.8%         6.0%         24.7%       July 2009    26.6%
Phoenix, AZ     0.0%         4.3%         23.3%       Jun-2009     17.6%
Seattle, WA     6.8%         11.6%        20.2%       August 2009  9.0%
Minneapolis-St  13.9%        13.0%        28.2%       July 2009    12.8%
Paul, MN
San Diego, CA   2.4%         8.4%         20.7%       August 2009  13.6%
Tampa, FL       9.0%         9.6%         29.1%       November     --
                                                      2008
Baltimore, MD   20.0%        13.0%        26.9%       August 2009  7.5%
Denver, CO      6.4%         11.1%        28.6%       June 2009    13.9%
Pittsburgh, PA  27.4%        23.8%        35.3%       November     7.5%
                                                      2009
Portland, OR    8.4%         9.0%         21.2%       September    10.7%
                                                      2009
Sacramento, CA  0.7%         5.2%         20.3%       June 2009    20.8%
Orlando, FL     4.6%         2.0%         24.4%       January 2010 --
Cincinnati, OH  20.2%        18.1%        30.6%       April 2008   9.6%
Cleveland, OH   25.8%        23.1%        34.1%       August 2009  19.9%
Las Vegas, NV   0.0%         3.0%         24.1%       October 2004 21.5%
Charlotte, NC   15.1%        19.1%        27.7%       February     13.0%
                                                      2009

By comparing the sale price of a foreclosure to the estimated, non-distressed
sale price of the same home, Zillow has taken a new approach to answering the
question, "How much can I save by buying a foreclosure?" Other reports compare
the median sale price of all foreclosures sold in a given period with the
median sale price of all non-foreclosures sold in the same period – an
approach that does not control for issues such as size, location or other
attributes of homes. Because foreclosed homes tend to be smaller and in
lower-priced locations, prior research tends to overstate the discount on
foreclosures relative to non-foreclosures. Zillow's approach controls for
those issues.

About Zillow, Inc.

Zillow (NASDAQ: Z) is the leading real estate information marketplace,
providing vital information about homes, real estate listings and mortgages
through its website and mobile applications, enabling homeowners, buyers,
sellers and renters to connect with real estate and mortgage professionals
best suited to meet their needs. More than 36 million unique users visited
Zillow's websites and mobile applications in October 2012. Zillow, Inc.
operates Zillow.com®, Zillow Mortgage Marketplace, Zillow Mobile, Postlets®,
Diverse Solutions®, Zillow Rentals and Buyfolio™. The company is headquartered
in Seattle.

Zillow.com, Zillow, Postlets and Diverse Solutions are registered trademarks
of Zillow, Inc. Buyfolio is a trademark of Zillow, Inc.

^i The foreclosure re-sale percentage is the percentage of home sales in a
given month in the given area where the home was foreclosed upon within the
previous 12 months (e.g., sales of bank-owned homes after the bank repossessed
a home during a foreclosure).

SOURCE Zillow

Website: http://zillow.com
Contact: Alison Paoli, Zillow, +1-206-757-2701, press@zillow.com