Who's still buying houses out there today, that's my question...
Housing markets have cooled a bit, but not before prices got even less affordable than ever.
Although many overheated U.S. housing markets lost steam during the third quarter of 2005, most still grew less affordable.
That's according to the Local Market Monitor, a real-estate market research provider.
Through the third quarter of 2005, 79 of the 100 surveyed markets had gotten more expensive, relative to what Local Market Monitor calculates as fair value.
At the top of the list for overpriced cities was Santa Barbara, Calif. at 86 percent overvalued. The average home there should cost $308,900, according to the Local Market Monitor. Instead it sold for $573,100. The survey found that only 16 of the markets had gotten less expensive.
Overall, 37 markets were found to be severely overpriced, which meant that they were at least 15 percent more expensive than they should be, and only 6 were underpriced by 15 percent or more. Fifty-seven were deemd to be farily priced.
January 23, 2006
Posted by blogger at 1/23/2006