Home Valuation Update

I finshed digesting the new IHS Global Insight market study, which at only 30 days old is probably one of the freshest market studies out there.

The study offers a snapshot as recent as the first quarter of 2009.  It highlights the price declines in the major metros in fact showing that 199 of the 330 metro areas are in decline. Which shows signs of strength comparing to 312 markets down in 4th quarter 2008.

Also important to note was the Pacific Northwest remained the only overvalued region in the US according to the study.   I literally just got back from Portland, OR which is highlighted as one of the most overvalued cities remaining.

Additionally it shows an OVER-correction in the market with America as a whole being 10% UNDER-valued.    The biggest declines are still happening in Florida, California, Michigan, and Nevada.  Michigan is feeling the pains of the auto and manufacturing center decline.    This is unfortunate as many investment property sellers were touting this as a great market for cash flow.  Maybe this is still the case but the long term prospects don’t look good.

IHS Global Insight

From the graph you can tell little of the US is overvalued.  Atlantic city remained the only severely overvalued market.  Important to note;

Atlanta, GA   =  22% Undervalued

Memphis, TN = 24% Undervalued

These are both cities Investor Nation offers properties for sale.   These cities are available at bargain basement prices.   Also the study points out that pretty much the entire state of Texas is undervalued.

Considering the study along with the record low interest rates, the window of opportunity is likely small.  Real estate went from highly overvalued in many areas to undervalued. I feel like we are living in unprecedented times.

Visit IHS Global Insight for the entire study.