Thursday, August 18, 2005

facing a correction

according to this article, 53 cities in the US, representing a third of the housing market, are "extremely overvalued" and will likely face a major market correction in the not-too-distant future. the researchers looked at factors such as historic price, area income, mortgage rates and population density to determine if home prices were overvalued. anything above 30% of what he estimates should be the fair market price based on those factors were deemed "extremely overvalued." and guess what? CA is screwed. number one of the list is santa barbara, but CA really dominates the list:

  1. Santa Barbara, Calif.
  2. Salinas, Calif.
  3. Naples, Fla.
  4. Riverside, Calif.
  5. Merced, Calif.
  6. Stockton, Calif.
  7. Port St. Lucie, Fla.
  8. Madera, Calif.
  9. Napa, Calif.
  10. Medford, Ore.
  11. Sacramento, Calif.
  12. Modesto, Calif.
  13. San Diego, Calif.
  14. Santa Rosa, Calif.
  15. Chico, Calif.
  16. Barnstable Town, Mass.
  17. San Luis Obispo, Calif.
  18. Oxnard, Calif.
  19. Fresno, Calif.
  20. Los Angeles, Calif.
  21. Miami, Fla.
  22. West Palm Beach, Fla.
  23. Vallejo, Calif.
  24. Ocean City, N.J.
  25. Bend, Ore.
  26. Sarasota, Fla.
  27. Redding, Calif.
  28. Fort Lauderdale, Fla.
  29. Nassau-Suffolk, N.Y.
  30. Santa Ana, Calif.
  31. Atlantic City, N.J.
  32. Bakersfield, Calif.
  33. Oakland, Calif.
  34. Santa Cruz, Calif.
  35. Palm Bay, Fla.
  36. Las Vegas, Nev.
  37. Poughkeepsie, N.Y.
  38. Vero Beach, Fla.
  39. San Jose, Calif.
  40. Bellingham, Wash.
  41. Panama City, Fla.
  42. Coral, Fla.
  43. Providence, R.I.
  44. Reno, Nev.
  45. Kingston, N.Y.
  46. Visalia, Calif.
  47. Deltona, Fla.
  48. Boston, Mass.
  49. Washington D.C.
  50. Essex County, Mass.
  51. San Francisco, Calif.
  52. Prescott, Ariz.
  53. Duluth, Minn.


At 5:04 PM, Blogger Morgan said...

Okay, most of these make some sense or are in "duh, you THINK??" territory, but... Duluth?? Doesn't demand drive housing rates? It's a nice smaller town, but... Duluth? And Bend, OR? There's... almost literally nothing there but some lava tubes.


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