Houses Are Priced Below True Value in One Third of U.S. Markets

By
Real Estate Agent with Keller Williams Realty Kingstowne/Alexandria, VA Office

What is the Value of a home? Other than the value to the homeowner where the value can be measured not only in financial terms, the financial value is "what a buyer is willing to pay for it." However, a report by Zillow, shown here in a video at Marketwatch.com, indicates that some U.S. housing markets are priced 30% below the value at which the homes should be selling. Those markets include Florida, Las Vegas, Detroit, and parts of the Mid- West among other areas. I suspect that the Sunbelt areas experiencing the current severe depressed housing market are more likely to bounce back over time than some of the colder industrialized areas. This is primarily because many of the baby boomers will start retiring in large numbers, when the economy improves (retirement portfolio) and take up the slack in the Sunbelt markets.

 Interestingly enough in the video, the Washington, D.C. area was singled out and is doing quite well and does not fall into this category. The biggest complaint I get from buyers is a "lack of inventory." Multiple offer situations are fairly common, especially on the best properties. If housing prices appreciate to where the seller is out of the woods on equity, we may start seeing more inventory as some of these sellers get out of their current home and head south to a warmer clime. This will in turn inject life into some of the depressed real estate markets in Florida, Las Vegas, and other areas.

http://www.marketwatch.com/video/asset/study-homes-in-30-of-us-markets-undervalued/DE794B8F-995A-4618-963F-73D50C7D8D9F

 

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Rainmaker
629,944
Gwen Fowler-864-916-2019 SC Mountains Lakes Homes
Gwen Fowler Real Estate, Inc - Salem, SC
Gwen Fowler Real Estate, Inc.

When will we see this start?  I keep hoping for a return to the 90's.  We had a good stream of people who had retired to Florida and decided they did not like the traffic, taxes or something so they came to the Carolinas.  I miss them.  So I wish you would send your boomers straight to us instead of to Florida and then to us.  Now you have me thinking, I may need to change where I am advertising and send the dollars north instead of south.

Aug 18, 2011 01:21 AM #1
Rainmaker
744,511
Peter den Boer
Atlanta Communities - Woodstock, GA
MBA,GRI, Associate Broker, Realtor

Tom - Great minds really do think alike! Good post. Oh, and those sellers don't all have to go to Florida, we can take a few here in Ga.!

Aug 18, 2011 01:24 AM #2
Rainer
103,310
Tom Robinson
Keller Williams Realty Kingstowne/Alexandria, VA Office - Fairfax, VA
Experienced Real Estate, Professional Serving No. VA and DC

My father used to call folks that moved down from say NY to FL and then to NC..."Halfbacks." They moved down to Florida and halfway back after a time.

I must confess, my family has roots in the Carolinas(Western), Georgia (Rome/Atlanta), and Florida. Almost all are now down in my home state of Florida and I long to get back home where I own a second home. My wife wants one in WIlmington, N.C. so I may be in both locales at some point. So, that is why have a bias towards the Sunshine State.

Aug 18, 2011 01:31 AM #3
Rainmaker
503,637
Vacation Rentals The Jeff Rickert Team
RE/MAX Property Specialists - Pocono Lake, PA
Poconos Vacation Rentals

Excellent presentation!  

If this is true why have taxes not followed?

Congratulations and best wishes!

Aug 18, 2011 01:38 AM #4
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Rainer
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Tom Robinson

Experienced Real Estate, Professional Serving No. VA and DC
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