Price trends in over 300 metropolitan areas were studied in the report. 202 of those markets had home prices which were determined to be fairly valued; with prices being between fourteen percent above or below the historic norms. Just over twenty of the markets studied were considered overvalued; between almost fifteen and thirty-five percent above the historic norms. Lastly, 106 markets were labeled undervalued, being more than fourteen percent below historic norms.
The report utilized the following criteria in the determination of findings: population density of the market, levels of household incomes and price difference factors related to schools, climate and additional factors.
Senior economist with HIS Global Insight, Jeannine Cataldi predicts that home prices will "bottom out" by the end of this year or in early 2010. Key determining factors with regards to the prediction are levels of unemployment and the number of distressed sales which banks need to unload.
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