Even if it were true, it still wouldn’t make sense. If a home goes into foreclosure there is a good chance there is someone on the sidelines who has been patiently saving his/her money and would like a chance to buy the home at a lower price.
So, while the home is sold for a lower rate, thereby theoretically lowering your ‘comps’ for the next few years, you’ll still get a buyer who can afford the house + maintenance ect, rather than a person barely holding on by their fingernails who cannot afford maintenance because they can barely afford their mortgage payment and food.
The oversupply has forced a 40% to 60% drop in homeprices nationwide.
The solution is simple ~ create a housing shortage.