In January 2006, CNNMoney published a ranking of 299 U.S. housing markets, showing where home prices were most overvalued. Little was undervalued: Real estate was white hot and prices were at or near what later proved to be their tops. A total of 213 cities were overpriced, and Naples, Fla., was deemed the most insane, with 84% of homes valued over a fair market price, according to statistics compiled by National City Corp. and IHS Global Insight.
That finding so rankled the Naples Chamber of Commerce and area real estate agents that they hired economists to dispute the evaluation. What a difference four years makes...
Today, Naples real estate sells at a 29% discount and the median home price is just $165,500, down from more than $390,000, according to the newly released 2010 report compiled by IHS Global Insight and PNC Financial Services. Nationwide, just 87 markets are considered overvalued, and Naples is now the 15th most undervalued area. Nearly all markets - 242 of 330 - are considered priced below fair market.
The most undervalued market is Las Vegas, where homes sell for 41% below fair market, followed by Vero Beach, Fla. (-40%), Merced, Calif. (-38%), and Cape Coral, Fla. (-37%).
references: les christie, cnnmoney
Comments (0)Subscribe to CommentsComment