|
Another way of measuring the degree of overvaluation is by the share of the total housing market meeting the criterion of overvalued. For example, at its peak in the fourth quarter of 2005, 16 percent of all housing units in America were in metro areas classified as overvalued. By the second quarter of 2008, however, that figure dropped to a modest 1 percent. When looked at in market value terms, overvaluation peaked at 31 percent during the fourth quarter of 2005. However, that measure has also fallen dramatically, to just 1 percent during the first quarter of 2008. In short, the U.S. housing market valuations are “normal” in the statistical sense. Some markets are overvalued whilst others are undervalued, with no meaningful imbalance overall. This, of course, is a dramatically different situation than we found 2 years ago.
|
2008/Q1 Price (,000) |
2008/Q1 Over-Valuation |
2008/Q2 Price (,000) |
2008/Q2 Over-Valuation |
|
|---|---|---|---|---|
| Bend, OR | $290.1 | 50.3% | $285.0 | 46.6% |
| Atlantic City, NJ | $261.6 | 54.2% | $258.9 | 51.6% |
| Madera, CA | $243.1 | 25.3% | $226.1 | 14.0% |
| Merced, CA | $184.1 | 10.2% | $155.2 | -8.9% |
| Prescott, AZ | $222.0 | 29.8% | $210.8 | 22.2% |
| St George, UT | $240.2 | 36.4% | $237.4 | 35.7% |
| Flagstaff, AZ | $250.8 | 21.4% | $247.8 | 19.4% |
| Miami, FL | $271.2 | 27.4% | $252.7 | 17.5% |
| Kalamazoo, MI | $113.5 | -10.2% | $109.9 | -14.3% |
| Elkhart, IN | $112.7 | -9.8% | $114.3 | -8.3% |
| Grand Rapids, MI | $114.6 | -13.4% | $113.8 | -15.5% |
| Fort Wayne, IN | $97.5 | -14.2% | $96.4 | -16.2% |
| South Bend, IN-MI | $105.1 | -12.9% | $106.4 | -12.7% |
