Of the 16 markets we analyzed (using data from the end of the third quarter), the Pittsburgh metropolitan statistical area (MSA) showed the biggest discount for foreclosed homes, with buyers currently paying 59 percent less for foreclosures than they would for similar non-foreclosures.However, there aren’t as many foreclosures to choose from in Pittsburgh as there are in some other markets. Ten percent of all sales in September were sales of previously foreclosed homes. That’s decreased even more, with 8 percent of sales in November being foreclosure re-sales.
The numbers might speak to the resilience of the Pittsburgh real estate market. There is such a bizarre confluence of factors in the region. Zillow provides a white paper detailing the methodology. I'm not that intrigued, more hoping someone wiser in such matters will comment.