Comps
The appraisal I recently had, they showed the the average of sold price and also of the list price of properties on Market in the same subdivision and close by area. So while it is true that it will take long time to regain the market, value, the stoppage of foreclosure is road to recovery of prices. Also at least in goergia there are government stimulus money to encourage the purchases.
I think it really depends on the area. In a lot of hard hit areas out my way some areas will take 15 years or more to get back where they were.....that is why so many are walking away in the hardest hit areas. Banks are holding the properties because they know it will cause properties to decline further.
awljsmith, similar to what you observe, the multi-family market in the Raleigh area offers very little in the way of discounts. My company is focused on REO and foreclosures since that is where our analysis shows the greatest potential portfolio return.