According to a (third quarter, 2006) Housing Market Analysis conducted by National City Corp, a financial holding company, in conjunction with Global Insight, a financial information provider the housing market in the Twin Cities is overvalued by 24%.
According to the same survey, Naples Florida is overvalued by 84% and 65 of the biggest real estate markets in the US were overvalued.
National City arrives at its estimates of what the typical house in these markets should cost by examining the town’s population densities, local interest rates, and income levels. It also factors in historical premiums and discounts for each area.
So what does that mean for the buyer? It’s difficult to say but now that it is a buyers’ market knowing the value of the home, knowing how much others buyers will pay, and knowing how much the seller will accept is valuable information – and something that a buyers agent can help you understand.buyers.
Category: MN Housing Market