The IHS Global Insight survey studied 330 metropolitan areas, and revealed that prices rose in 169 markets and fell in the remaining 161. The survey began in 2005 and this is the first time that there were no MSAs with prices deemed to be “extremely” overvalued.
“For the nation as a whole, the housing market is now slightly undervalued, 8.6 percent when weighted by market value and 10.1 percent when weighted by housing units,” IHS Global Insight said.
Pricing has made some strides recently and third quarter numbers by S&P Case-Shiller showed a 3.1% jump up although they were down 9% from the year before.
Interestingly, IHS reports that “only 16 metro areas have escaped net home price declines since the cycle began. All 16, except Pittsburgh, are in the center of the country, and six are in Texas. Two areas hit hard by the housing downturn – Los Angeles and Miami – recorded third quarter price increases above 4.0 percent.”
Are we nearing an economic recovery? What lessons should our nation have learned during this crash about real estate bubbles to avoid the next go around? Tell us your thoughts in the comments!