Housing Markets Across America
Real Estate Update with Cheryl Marlow
770 KKOB AM’s Residential Real Estate Specialist!
The Albuquerque real estate market seems to be in the news a lot lately, and all for good reason! CNNMoney.com recently reported on the major housing markets across the country and which they determined to be overvalued and undervalued. So of course, we want to know how Albuquerque is stacking up against the rest.
The most recent housing analysis that CNN reported on was actually performed by National City, and their report states that 65 of our nation's 299 largest real estate markets are drastically overpriced! This means that price corrections are absolutely necessary in order for these markets to rebound from the nationwide slump! Just to give you somewhat of an idea, according to the report, a median-priced home in the most overvalued market in the US, Naples, Florida, sells for $329,000 and this report claims that it should be closer to $180,000. That kind of price difference makes it evident that overpricing is a problem in some areas!
So how does such an analysis determine whether or not a market is overvalued? Well, these estimates of what typical homes should cost are determined by:
1. Local Interest Rates
2. Income Levels
3. Population
and
4. Historical premiums and discounts.
Not surprisingly, the screamingly overpriced markets skim both the East and West coasts. Many housing markets in California and Florida are topping the list of overvalued real estate. As there are overvalued markets there are also undervalued markets and both will have problems in getting homes sold. If homes are overpriced, you're going to have a hard time finding a buyer, especially if you're unwilling to budge on price. And, if you underprice your home then you're simply not going to get what you deserve for it! So it's important to price your home correctly in order to see a sale in the future!
According to the report, Albuquerque is quoted as being "Just Right". This is fabulous news for our market! It tells us that our actual selling prices of homes are close to expected values and in turn they should bring more sales! This verifies what I've always said; Albuquerque has typically been a stable market which sees minor price adjustments compared to other markets, not huge gains or huge price drops. All of this proves again that Albuquerque is a great place to own real estate!
Cheryl Marlow
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