Dive summary:

• The steep discounts on foreclosed homes that have given them an edge over what home builders could offer appears to be shrinking and, in Las Vegas in the second quarter of the year, even reached zero.
• Part of the reason is the shrinking supply nationally of foreclosed homes, and another is an increase in the number of buyers as the recession recedes.
• It also appears that institutional investors with available cash do not need the same discounts that mom-and-pop buyers did to make their investments work.

From the article:

According to CoreLogic, when foreclosures and short sales are included with normal sales, home prices are now higher than they would be without distress sales. ...