Bank owned homes should not be used as direct comparables for non-bank owned homes unless they are the only options. When they are the only option, adjustments can be made by a good appraiser for condition and other factors that would cause it to sell for less than a conventional sale.
The distressed inventory will continue to have some effect on the market until it returns to a more normal level in a few years, but remember too that bank owned properties come with some level of risk.
Banks never lived in the homes; therefore any disclosure made by the banks will be limited to useless to the buyer. Bank owned properties are generally in poorer condition than conventional homes. The previous owners are typically in financial distress and put off maintenance and updates a private party would do to maximize their value.
I can't speak for Tacoma, but many markets north of you have a shortage of inventory and are seeing multiple bids for well presented, well maintained and properly priced homes. As a buyer, your local agent will be critical to evaluating the value of any home you are interested in and providing you with good data to make a good purchase decision. Just because a home is or is not bank owned alone does not make it a good or bad investment.