IS THIS GOOD OR BAD?
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:
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. |