That’s the accusation in this article in Zerohedge. Houses sold in foreclosure auctions are reported on the MLS as having sold for their asking price when in fact they may have sold for 40% less.
So far as I know, that is not going on here in Greenwich – for one thing, we have very few foreclosure auctions, so far. I know of only a couple of dubious reported sales prices, and those were by a developer trying to keep of the value of his remaining houses. But if it’s a common phenomenon in other parts of the country, the hen housing prices may be even worse that we thought.