Well, at least Seattle is not in the ‘Overvalued’ category. That’s according the the housing research firm, Local Market Monitor, a North Carolina-based firm that provides investors with analysis on local conditions. Nationally, the firm expects home prices to decrease by 0.6%.
Las Vegas? Down until 2032
According to the Monitor, it will take until 2032 for Vegas to revert to equilibrium… Why? Largely because its construction and manufacturing job base is considered ‘volatile’ and not expected to rebound anytime soon.
Las Vegas received this devastating rating even though its median home prices are less $145,000. And, to make matters worse, that’s less than half of what they were at the peak of the bubble, and nearly 30% less than what Local Market Monitor calculates would be an ‘equilibrium price,’ or fair market value.
The equilibrium price
The ‘equilibrium price’ is based on economic and population growth, construction costs, vacancies, household income and interest rates – along with an “X Factor” thrown in, a value that company founder Ingo Winzer derives from 20 years of market data. Read more to learn what this factor is.
Most markets now fairly priced
Nationally, the great majority of housing markets are now fairly valued, according to Local Market Monitor: only 8 markets are overpriced, and 15 are underpriced.
Contrast this with the boom-time of mid-2006 when:
- 37 of the biggest markets were overpriced,
- 6 under-priced,
- 57 fairly valued.