Daily Real Estate News | March 17, 2011 | Share
Are Home Prices Declining Too Much?
An analysis of home values relative to income from PMI finds that prices vary by location — spiking, for example, in states like Georgia and Nevada during the housing boom but since overcorrecting.
Meanwhile, states such as Kentucky and Texas escaped the bubble but have seen prices fall due to the recession; states like California, Hawaii, and Massachusetts continue to report high prices relative to income; and states like Florida and Pennsylvania have seen prices return to historic norms.
Supply, demand, and distressed sales will impact recovery in each area, finds the report, which predicts a pick-up in sales later this year.
Source: “Real estate price declines overshooting fundamentals?” Inman News (03/17/11)
