Ahh yes, more wonderful news regarding the valuation of homes in ‘overvalued’ areas. Check out this article, and look at the percentages.
Pretty scary, isn’t it? Could you imagine just buying a home in Naples only to find out you paid double what it’s worth?
Single-family homes in 71 U.S. cities were extremely overvalued in the first quarter of 2006 and at risk of price correction, with the costliest properties clustered in California and Florida, economists said Monday.
Naples, Fla., Salinas, Calif., and Port St. Lucie-Fort Pierce, Fla., were the three most overvalued markets, according to the report, while College Station, Dallas and Fort Worth were the most undervalued. The median price of $383,000 in Naples was a 102.6% overvaluation, for example, while College Station homes, at a median price of $94,000, were 24% less than the market could bear, it said. Overall, 17 of the 20 most overvalued markets are in California and Florida.
Everyone expects a downward trend right now, although no one seems to want to take a guess at how much…