Friday, June 19, 2009

Most Overvalued and Undervalued Housing Markets

http://imgs.sfgate.com/c/pictures/2008/04/30/mn_home_prices_nybz.jpg

Low prices bring investors back into many markets according to a report from CNNMoney
. Home price declines have sent affordability soaring. Prices have fallen so far that the average U.S. home is now undervalued by 12.2%, according to a new report from IHS Global Insight.

"The good news is that the declines are happening as consumer confidence is rising and housing sales and [building] starts seem to be bottoming out," said Jeannine Cataldi, senior economist for IHS in a statement accompanying the study.

There are still some over-valued areas. Atlantic City, N.J., for example, where overvaluation is at 44.1%, the most of any metro area. Others include Ocean City, N.J. and Wenatchee.

In the biggest metro area, New York City, the price is just about right, with a median at $469,400, an under-valuation of just 3.3%.

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