Article Review: Price Corrections Leave Some Hard Hit Markets “Undervalued”

I read this blog and thought to myself, “Any investor would realize that the undervalued areas now are the ones that will make huge returns in the future”. Perhaps you, the spirited investor, should take this into consideration. If you look down that list and see that in 3 of the areas listed are areas your friends at Land Sales Company have vacant property available and no less at rock bottom prices. Take for example, Ohio. Elyria is number 3 on the list at an average of 21% undervalued. What this means is currently all real estate in the area is selling for 21% less than what these lots should be selling for. We have a lot in Lorrain, OH which is minutes north of Elyria for a very small price. Going down the list to #8 is the McAllen-Edinburgh area of Texas. We have a lot in San Benito, TX; a suburb of McAllen and those lots are going for even cheaper from us. Why would you miss this opportunity? Why not take advantage of the rough period to maximize your return on an investment? Pick up the phone and give us a call. You’ll be glad you did.

Price Corrections Leave Some Hard-Hit Markets ‘Undervalued’

The housing boom / bust cycle can also be described as a pendulum, with a happy medium right in the middle.  During the boom cycle, home values got out of control, swinging the pendulum high out into the over-priced category.  Now however, we’ve gone bust.  The pendulum has swung not simply back to the middle, but with mounting foreclosures adding to the momentum, home prices have gone well beyond fair to undervalued.

This isn’t anything unexpected, we’ve written about this before.  Today, DSNews has reportetd a story, with data from Local Market Monitor, claiming there are scores of metro areas where prices have over-corrected to the point that now, housing in these markets is considered to be “undervalued.”

1. Merced, California: 32%
2. Las Vegas-Paradise, Nevada: 27%
3. Killeen-Temple-Fort Hood, Texas: 25%
4. Akron, Ohio: 22%
5. Cleveland-Elyria-Mentor, Ohio: 21%
6. Warren-Troy-Farmington Hills, Michigan: 21%
7. Mansfield, Ohio: 20%
8. McAllen-Edinburg-Mission, Texas: 20%
9. Reno-Sparks, Nevada: 20%
10. Stockton, California: 19%

Also as we have warned before, each market must be considered separately.  Just because some markets are undervalued, doesn’t mean that real estate across the entire country is undervalued.  In fact, the following 10 metro areas are considered overvalued.

1. Atlantic City-Hammonton, New Jersey: 45%
2. Barnstable Town, Massachusetts: 30%
3. Nassau-Suffolk, New York: 26%
4. Asheville, North Carolina: 26%
5. Portland-Beaverton, Oregon-Washington: 24%
6. Los Angeles-Long Beach-Glendale, California: 24%
7. Santa Ana-Anaheim-Irvine, California: 23%
8. Edison-New Brunswick, New Jersey: 20%
9. San Jose-Sunnyvale-Santa Clara, California: 19%
10. Boulder, Colorado: 19%

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