UtahCribs Weblog

Real Estate, Homes, News, Statistics and more

Posted by UtahCribs, Real Estate, Homes on April 21, 2009

dev_valuation_d_200904201509491

I found this great article in the Wall Street Journal. I think this gives a glimpse into the reality of the Real Estate market. Everyone needs to understand that Real Estate is a localized market. Salt Lake City Real Estate is much different than the rest of the country. Take a look…

Home prices in most of the U.S. have fallen back into line with what the typical household can afford to pay in most of the U.S., according to a new study.
The quarterly report – by economists at IHS Global Insight, a research firm, and PNC Financial Services Group Inc., a banking concern based in Pittsburgh – looks at price trends in 330 metropolitan areas across the country. Home prices are “extremely overvalued” in only one of those areas, Atlantic City, N.J. In 2005, 52 metro areas were in that category. (See full report.)
For the fourth quarter of 2008, covered by the new report, home prices are dubbed “fairly” valued in 202 of the 330 markets studied. That means the average price level is within a band 14% above or below the historical norm. Twenty-one markets are ranked as “overvalued,” or between 14% and 34% above the norm. And 106 markets are considered “undervalued,” or more than 14% below the norm.
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