Most Undervalued Housing Markets
"The good news is that the declines are happening as consumer confidence is rising and housing sales and [building] starts seem to be bottoming out," said Jeannine Cataldi, senior economist for IHS in a statement accompanying the study.
The report claimed the most undervalued metro area in the nation is Vero Beach, Fla., where the median home price has fallen 29.7% since the first quarter of 2005 to $125,400. That is 42.5% below the expectation. Houma, La., prices, at a median of $113,500, are undervalued by 41.4%. Las Vegas prices have dropped more than 46% since 2005, and the city is now undervalued by 40.9%.
5 Most Undervalued
Home prices in these cities are well below normal:
1. Vero
Beach, Fla.
Median Home Price: $125.4K
Percent Overvalued: -42.5%
2. Houma,
La.
Median Home Price: $113.5K
Percent Overvalued: -41.4%
3. Las
Vegas, Nev.
Median Home Price: $140.0K
Percent Overvalued: -40.9%
4. Merced,
Calif.
Median Home Price: $106.0K
Percent Overvalued: -40.1%
