Posted on Saturday, January 15, 2011
What are the most overvalued and undervalued housing markets in the country? The Local Market Monitor recently released a list for investors analyzing buying conditions for real estate markets in the United States.
Overall, Las Vegas was a city they flagged as the worst -- or “frankly dangerous,” as they referred to it. They said the city is not only one of the most undervalued housing markets in the country but is also considered one of the worst housing buys. Orlando, Fla., was another city the Local Market Monitor considered a bad investment city.
Las Vegas’ median home price is less than $145,000--a drop of more than half in its median home price since its housing peak days. The Local Market Monitor says Las Vegas is also nearly 30 percent less than what would be considered fair market value. Both Las Vegas and Orlando have been plagued with high inventories of homes due to overbuilding from a few years ago, and also are two of the hardest hit areas for foreclosures.
Here’s a list of the most overpriced housing markets and the percentage they are overvalued by, according to the report:
1. Nassau-Suffolk, N.Y.: 26% ($418,416 median home price)
2. Los Angeles: 24% ($368,056 median home price)
3. Portland, Ore.: 24% ($240,912 median home price)
4. Anaheim, Calif.: 23% ($449,396 median home price)
5. Edison, N.J.: 20% ($286,900 median home price)
Here is a list of the top 5 most undervalued markets:
1. Las Vegas: -27% ($144,636 median home price)
2. Akron, Ohio: -22% ($155,673 median home price)
3. Cleveland: -21% ($154,674 median home price)
4. Warren, Mich.: -21% ($111,114 median home price)
5. McAllenn, Texas: -20% ($131,871 median home price)