According to my favorite housing study by Global Insight/National City Sacramento has gone from over 50% overvalued in Q3 of 2005 to 15.9% overvalued in Q3 of 2007!
I am not sure I completely agree with their assessment. Likely because they account for interest rates, so perhaps with low interest rates, it makes their overall valuations look better at higher median prices. Excerpt on what their study covers:
"Our approach to determining statistically normal house values1 considers not only house prices and interest rates, but household incomes, population densities and any historical premiums or discounts metropolitan areas have exhibited over time."
Don't know exactly when this was released...usually it makes the news...just happened to stumble on it when showing a friend in D.C. the stats. Apparently declining home value studies don't even make the major news outlets anymore!
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Interest rates haven't changed that much since 2005 and exotic products are gone - so it is actually harder, on average, to buy a home unless the price is less.
Remember, AB, while you might think yourself average, your desired abode is larger and nicer than average, but isn't everybody's?
Did you guys see the article in the bee about foreclosures in sac over the weekend?Some street had about 10 foreclosures.some dude picked up a house for 86 grand.Looks like a real bad neighborhood to me.Probably have to sleep w/ a shotgun.Scrap metal is in high demand in these areas and catalytic converters are like gold to tweekers.
"Remember, AB, while you might think yourself average, your desired abode is larger and nicer than average, but isn't everybody's?"
First -- what's the "average" sf now?
And what makes a house "nicer"?
The short answer to your question is "no". To paraphrase the immortal Dash ,when everything is special then nothing is.
Off topic (or at least an old topic)
I know several people have HomePointe for their property manager. I've been hearing bad things and posted a bit under the rental thread.
What rental thread??
http://averagebuyer.blogspot.com/2007/07/finding-rentals.html
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