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August 30, 2006
84 of 100 major markets overpriced
This just in from John Burns Real Estate Consulting. Giving it to you unedited:
84% of Markets Are Overpriced
Of the 100 largest metropolitan areas (based on annual permit activity):
Only 13 markets are below their historical median affordability level, 3 are exactly at their median and 84 are above the median.
The four markets that have remained very inexpensive are Cincinnati, Indianapolis, Cleveland and Pittsburgh.
Nine markets have even worse affordability levels than when mortgage rates were 18%+ in the early 1980s: New York, Washington, D.C., Los Angeles, Seattle, Portland (Oregon), Baltimore, Edison (New Jersey), Nassau (New York) and Naples.
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Things will continue to worsten in real estate as long as the trend in increasing inventory continues. Whether this downturn is soft or hard will likely depend on whether that inventory level reaches a tipping point; what that tipping point is, is anyone's guess. If I had to make a call I would say it will be a hard downturn starting after two more months of inventory increases.
Posted by: Brandon W at September 2, 2006 09:31 AM
Inventory has swelled to all time highs in the past nine months. Now, it is about to EXPLODE: http://www.safehaven.com/article-5841.htm
Posted by: Dave at September 7, 2006 02:02 AM