One of the things that has always bugged me about the way many analyze real estate markets is the prevailing wisdom that foreclosure properties are not relevant to understanding the market…that foreclosure sales are “tainted.”
A sale coming out of foreclosure is a sale anyway you slice it. It represents competition for existing listings. If foreclosure list prices happen to be lower, they will influence non-foreclosure listing prices and time on the market for all properties. Foreclosure listings or sales are not some special transaction in a vacuum. The decision to include them should not be affected by whether the market is rising, falling or stable.
So I thought it was pretty cool to see the announcement of Trulia’s partnership with RealtyTrac and the addition of 400,000 foreclosure listings to the more than 2,000,000 listings that are currently available on Trulia.com
Coincidentally [wink], this month’s Trulia Trends Report spotlights foreclosure listings. The report is based on a continuing evolution of ideas that has come as a result of the collaboration between Trulia and my appraisal firm Miller Samuel.
Trulia understands how important it is not to arbitrarily filter out content.
Disclosure: I am a member of the Trulia Industry Advisory Board so I may have been temporarily insane when I wrote this post.