Foreclosure discount going away. Phoenix and Vegas have no foreclosure discount

It appears that as the housing market is improving, the discount you get by going through the foreclosure process is decreasing.

SFGATE Article

The article is showing that areas with the highest demand will, obviously, have the lowest discounts:

Where in some places there is no discount such as Las Vegas and Phoenix. That could be because homes are already so reduced, that foreclosures cannot go much lower. It would be interesting to find a more in depth study on this. As much as I like Zillow, sometimes their data can be a bit skewed.

So in areas with little financial incentive for a foreclosure, I guess people must fall in love with a home or it has the best options for them in a tough market to deal with a bank vs a private seller.

Are you in one of these low foreclosure discount cities? What are you seeing?