We're in Palm Bay, Florida. One of the 53 housing markets in the country that are "extremely overvalued and vulnerable to price correction" according to this analysis. To be specific, we're #35.
High-priced housing faces risks
Fifty-three metropolitan areas representing 31% of the total U.S. housing market are considered extremely overvalued and confront a high risk of future price corrections, a study conducted by National City Corp. says. The study determines a market extremely overvalued if prices are 30% above where the study estimates they should be based on historic price data, area income, mortgage rates and population density.(via Yahoo! News)
Metro areas that are extremely overvalued and vulnerable to price correction:
Rank Metro area Q1 valuation 1 Santa Barbara, Calif. 69% 2 Salinas, Calif. 67% 3 Naples, Fla. 62% 4 Riverside, Calif. 60% 5 Merced, Calif. 59% ... ... ... 35 Palm Bay, Fla. 38%
You know, what it was bought for was really rather reasonable. The house is huge and had some sweet upgrades. Had the price been adjusted to the estimates of the value AFTER the hurricane repairs tere would have been more of an issue. But I looked at the appraisal and it appraised for asking without the enclosure and in comparison to several homes that had not been sold in a couple of years. I would be more concerned if I were buying the house down the street selling for 20% more that is 25% smaller than ours.
i'm # 115...woohoo!
Crossing ones fingers is a good strategy.