America's Most Undervalued and Overvalued Cities
The big news of the survey? Las Vegas is on both the most undervalued and overvalued lists.
Also offering among the worst home values are Long Island, N.Y., Los Angeles and Portland, Ore., while Akron, Ohio, Cleveland, and Warren, Mich., have some of the best housing deals in the nation.
The National Association of Realtors' report on third quarter metro area home prices stated this:
"Even with swings in home sales, prices this year have been changing very little from year-ago readings. Areas with some larger swings in home price reflect the degree of distressed sales in those markets," said Lawrence Yun, the Association's chief economist.
Yun goes on to say that "home sales through the first three quarters of this year are virtually the
What's best right now is for consumers to go back to the long-term purchase attitude. People that are in a home 11-15 years had a 40 percent gain. There was a typical homeownership period of about six years where people were staying in their home for 10 years but if more people switch to the long-term view and with the rise in interest rates that should off-set the decline in home prices. But what is holding the market back is the banks.
"The credit is too tight now, banks want more down payment requirements and that is holding the market back," Walter Molony, spokesman for the National Association of Realtors told AOL Real Estate. "We have a big pendulum swing from what it was before the crash in 2008 to this tightness now, and what we need to see to boost the market is a swing back to the middle."
It's projected to take 10 years for homeowners in the bubblish markets to be whole, if sales rise about 8 precent and job growth and mortgage rise at 5.3 percent, as is expected.
Here's how the country breaks down, according to the NAR:
In the condo sector, metro area condominium and cooperative prices - covering changes in 56 metro areas - showed the national median existing-condo price was $171,400 in the third quarter, down 3.9 percent from the third quarter of 2009. Twenty-nine metros showed increases in the median condo price from a year ago and 27 areas had declines; only four metros saw annual price gains in third quarter of 2009.
Regionally, the median existing single-family home price in the Northeast rose 2.5 percent to $253,400 in the third quarter from a year earlier. Existing-home sales in the Northeast fell 27.3 percent in the third quarter to a pace of 693,000 and are 24.4 percent below the third quarter of 2009. Year-to-date sales in the Northeast totaled 638,000, essentially unchanged from 637,000 at this time last year.
In the Midwest, the median existing single-family home price declined 3.0 percent to $145,600 in the third quarter from the third quarter of 2009. Existing-home sales in the Midwest dropped 33.7 percent in the third quarter to a level of 860,000 and are 28.9 percent below a year ago. Year-to-date there were 849,000 sales in the Midwest, compared with 860,000 in 2009.
In the South, the median existing single-family home price slipped 1.9 percent to $157,000 in the third quarter from the same period in 2009. Existing-home sales in the region fell 21.8 percent in the third quarter to an annual rate of 1.64 million and are 16.4 percent below the third quarter of last year. There were 1.43 million sales year-to-date in the South, in contrast with 1.39 million last year.
The median existing single-family home price in the West dipped 0.4 percent to $224,800 in the third quarter from a year ago. Existing-home sales in the West fell 20.7 percent in the third quarter to a pace of 973,000 and are 18.2 percent below the third quarter of 2009. Year-to-date sales in the West totaled 876,000, vs. 889,000 in 2009.
"The bottom line is, 'Can you afford a home and are you a sustainable homeowner?' says NAR's Molony. "If you can answer these questions then you're fine. Mortgages are performing far better than before the housing boom."
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