This house was originally listed in December, 2007 for $249,000. The listing expired, then it must've forclosed because it was relisted as a bank owned property in November, 2008 for $210,900. The November 13 sale for $208,207 was the forclosure recording (it's always recorded as a sale from the previous owner to the bank). It then sold a couple of weeks ago, January 20, for $207,250. This sale hasn't been recorded by the county yet, but I'd assume the Trulia listing will adjust as soon as it changes.
The short answer to your question is that the property value is the $207,250 that someone was willing to pay for it. There was a comprable neighborhood sale in October, 2007 for $333,354 and a current active listing for $328,500. So, I'd guess on a quick glance, that the buyer of the forclosure got a great deal.
What a great time to buy a house!!