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  • IS THIS GOOD OR BAD?

    Filed at 9:13 pm under by dcobranchi

    From CNN:

    The nation’s most undervalued real estate market is Fayetteville, N.C. At a median price of $175,800, the median house costs 21 percent below equilibrium.

    If one believes in reversion to the mean, I guess it would be good.

    UPDATE: The text doesn’t accurately represent the data in the table. (Repoduced below, sorted most undervalued to most overvalued).

    El Paso TX $127.50 $171.50 -26% Undervalued
    McAllen-Edinburg TX $123.10 $156.20 -21% Undervalued
    Fayetteville NC $149.80 $183.00 -18% Undervalued
    Memphis TN $162.60 $197.90 -18% Undervalued
    Augusta GA $158.70 $192.30 -17% Undervalued
    Little Rock AR $155.90 $186.90 -17% Undervalued
    Dallas-Fort Worth TX $160.70 $186.20 -14% FairValue
    Indianapolis IN $170.20 $197.60 -14% FairValue
    Pittsburgh PA $155.60 $182.00 -14% FairValue
    Charlotte-Gastonia NC $190.70 $219.90 -13% FairValue
    Houston TX $155.20 $177.90 -13% FairValue
    Cincinnati OH $180.50 $206.00 -12% FairValue
    Columbus OH $192.40 $217.80 -12% FairValue
    Baton Rouge LA $150.20 $168.20 -11% FairValue
    Columbia SC $167.30 $189.00 -11% FairValue
    Knoxville TN $161.30 $181.90 -11% FairValue
    Birmingham AL $177.80 $197.00 -10% FairValue
    Brownsville-Harlingen TX $129.80 $143.80 -10% FairValue
    Des Moines IA $167.10 $185.40 -10% FairValue
    Greensboro-High Point NC $162.70 $180.80 -10% FairValue
    Raleigh NC $201.00 $222.40 -10% FairValue
    Wichita KS $125.60 $140.10 -10% FairValue
    Greenville SC $166.70 $183.50 -9% FairValue
    Lexington KY $172.70 $188.80 -9% FairValue
    Tulsa OK $133.60 $147.60 -9% FairValue
    Louisville KY $164.50 $179.00 -8% FairValue
    Nashville TN $179.60 $196.20 -8% FairValue
    Omaha NE $160.50 $172.50 -7% FairValue
    San Antonio TX $149.00 $161.00 -7% FairValue
    Kansas City MO $171.90 $183.70 -6% FairValue
    Oklahoma City OK $140.70 $149.00 -6% FairValue
    Winston-Salem NC $166.80 $177.80 -6% FairValue
    Cleveland OH $173.40 $183.00 -5% FairValue
    Durham NC $209.30 $219.70 -5% FairValue
    Albuquerque NM $180.90 $188.60 -4% FairValue
    Boise City ID $168.10 $173.80 -3% FairValue
    Atlanta GA $203.00 $208.00 -2% FairValue
    Austin TX $172.90 $171.60 1% FairValue
    Grand Rapids MI $161.90 $160.90 1% FairValue
    New Orleans LA $190.40 $188.00 1% FairValue
    Ogden-Clearfield UT $162.60 $160.40 1% FairValue
    Ann Arbor MI $243.10 $239.40 2% FairValue
    Colorado Springs CO $208.90 $203.30 3% FairValue
    Myrtle Beach SC $190.70 $185.70 3% FairValue
    St. Louis MO $178.30 $172.50 3% FairValue
    Fayetteville-Springdale AR $176.10 $167.70 5% FairValue
    Milwaukee-Waukesha WI $217.10 $206.50 5% FairValue
    Hartford CT $237.20 $224.20 6% FairValue
    Richmond VA $219.70 $205.40 7% FairValue
    Detroit MI $156.60 $145.40 8% FairValue
    Lakeland FL $170.10 $158.20 8% FairValue
    Madison WI $224.60 $208.50 8% FairValue
    Seattle-Tacoma WA $308.70 $286.60 8% FairValue
    Denver CO $238.00 $216.10 10% FairValue
    Greeley CO $195.70 $178.40 10% FairValue
    Salt Lake City UT $194.50 $175.00 11% FairValue
    Charleston SC $251.60 $224.70 12% FairValue
    Minneapolis-St. Paul MN $254.40 $226.90 12% FairValue
    Philadelphia PA $247.20 $217.90 13% FairValue
    Chicago IL $266.30 $234.50 14% FairValue
    Ocala FL $176.90 $155.50 14% FairValue
    Portland-Vancouver OR $231.80 $201.60 15% FairValue
    Provo-Orem UT $173.20 $150.40 15% Overpriced
    Wilmington NC $248.70 $217.20 15% FairValue
    Virginia Beach-Norfolk VA $250.00 $215.60 16% Overpriced
    Baltimore MD $283.50 $242.90 17% Overpriced
    Jacksonville FL $228.70 $190.70 20% Overpriced
    Orlando FL $239.20 $196.30 22% Overpriced
    Pensacola FL $217.70 $175.40 24% Overpriced
    Phoenix-Mesa AZ $244.10 $195.70 25% Overpriced
    Tucson AZ $214.80 $171.30 25% Overpriced
    Honolulu HI $390.40 $310.10 26% Overpriced
    Deltona-Daytona Beach FL $216.80 $168.00 29% Overpriced
    Boston MA $380.40 $285.30 33% Overpriced
    Las Vegas NV $302.00 $227.50 33% Overpriced
    Tampa-St. Petersburg FL $219.70 $164.70 33% Overpriced
    Cape Coral-Fort Myers FL $278.40 $208.20 34% Overpriced
    Reno NV $338.10 $252.30 34% Overpriced
    Washington-Arlington DC $377.90 $275.20 37% Overpriced
    Bakersfield CA $233.50 $168.60 38% Overpriced
    Palm Bay-Melbourne FL $249.40 $179.10 39% Overpriced
    Panama City FL $294.40 $211.10 39% Overpriced
    Atlantic City NJ $262.90 $186.60 41% Overpriced
    Vero Beach FL $291.80 $205.50 42% Overpriced
    New York-North New Jersey NY $431.00 $300.50 43% Overpriced
    Sarasota-Bradenton FL $312.60 $218.20 43% Overpriced
    Port St. Lucie-Fort Pierce FL $262.50 $181.60 45% Overpriced
    Fresno CA $269.70 $178.40 51% Overpriced
    San Francisco-Oakland CA $737.70 $483.10 53% Overpriced
    Miami-West Palm Beach FL $298.70 $194.60 54% Overpriced
    Los Angeles-Anaheim CA $460.80 $294.10 57% Overpriced
    Vallejo-Fairfield CA $386.90 $244.60 58% Overpriced
    Sacramento CA $366.60 $230.90 59% Overpriced
    San Jose CA $599.20 $372.40 61% Overpriced
    Riverside-San Bernardino CA $325.10 $198.30 64% Overpriced
    Stockton CA $353.20 $215.10 64% Overpriced
    San Diego CA $491.60 $289.70 70% Overpriced
    Modesto CA $304.80 $178.40 71% Overpriced
    Naples FL $419.90 $244.00 72% Overpriced
    Santa Barbara-Santa Maria CA $573.10 $308.90 86% Overpriced

    One Response to “IS THIS GOOD OR BAD?”


    Comment by
    Daryl Cobranchi
    July 27th, 2006
    at 5:29 am

    I wonder how they are determining equilibrium?

    From their website:

    ANNUAL SUBSCRIPTION
    On-line access to all 100 Market Reviews, updated quarterly.
    Corporate subscription: $5,669. Individuals: $1,669.

    I’m not willing to suffer quite that much for my “art.” 🙂

    I have seen other surveys where they attempt the same measurement. One of the factors was the cost of carrying a median mortgage compared to renting. The thinking is that the market gets frothy as that ratio increases past some number which I remember not.