The Zillow story can’t stay down. This time it’s the Grey Lady herself, the New York Times weighing in, saying that the complaint is racially motivated.

Zillow.com, the Web site that provides free home valuations, has been accused by a coalition of community activist groups of undervaluing the homes in black and Latino neighborhoods.

This story is just getting weirder and weirder.

One of my favorite blogs, the snarky Valleywag chimes in with this observation.

Zillow’s best defense is, “Our system is inaccurate all over,” only slightly mitigated by their other defense, “These numbers aren’t serious estimates.”

When you put it that way, that’s not much of defense.

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