The Bigger They Are . . .
Apparently, overvalued homes took the biggest plunge between 2005 and now. In 2005, there were 330 areas nationwide that were classified as "significantly overvalued." Now, guess how many there are?
None!
In fact, homes are actually undervalued now. Between 9 and 10 percent undervalued actually.
Can anyone else smell the possibilities now???
What this basically means is what we all know now. People knew the homes they were investing in were overvalued. They could see the trends building up since before 2005. But as long as people were cashing in, it didn’t bother them too much.
Then came the crash!
And where were properties overvalued the most? Same places where they crashed the worst:
Florida and California.
Prices rose over 90% in those areas from early 2002 to their peak in 2005.
And it doesn’t stop there. Some places haven’t crashed as rapidly, but they’re still going down. 26 major markets are still declining nationwide.
So it’s no wonder those areas show the slowest turn-over rate. Even the best metropolitan areas have a days-on-market of over 100. The worst (you can guess for yourselves where this is) averages 220 days-on-market.
I’ll keep watching the numbers for you. And you keep watching my posts for everything you need to know to whether this crisis (and any others that may come our way).
