I remember this report coming out in 2006 showing Las Vegas as being one of the most Overvalued places in the country. There was outrage by the local Real estate Guru’s who tried to disclaim those findings with the lack of lands claims and Manhattenization of Vegas. Now 4 years later the pendulum has swung the other way. Nearly 242 of the 330 cities are considered undervalued :
Here are the top ten most undervalued cities as compiled by National City Corp. and IHS Global Insight:
City , median price , 2010 valuation and 2006 valuation.
| Las Vegas, Nev. | $129,700 | -41.4% | 38% |
| Vero Beach, Fla. | $123,300 | -39.8% | 54% |
| Merced, Calif. | $102,300 | -37.7% | 77% |
| Cape Coral, Fla. | $118,700 | -36.8% | 52% |
| Houma, La. | $116,200 | -34.6% | -1% |
| Port St. Lucie, Fla. | $115,600 | -33.3% | 72% |
| Warren, Mich. | $117,500 | -32.3% | 15% |
| Vallejo, Calif. | $196,900 | -31.9% | 53% |
| Modesto, Calif. | $138,700 | -31.8% | 67% |
| Stockton, Calif. | $145,100 | -31.8% | 72% |
Now for the ten most Overvalued cities:
| Atlantic City, N.J. | $232,100 | 30.2% | 59% |
| Wenatchee, Wash. | $240,900 | 28.9% | 13% |
| Ocean City, N.J. | $294,800 | 26.6% | 47% |
| Longview, Wash. | $184,700 | 22.3% | 24% |
| Honolulu, Hawaii | $605,300 | 21.9% | 31% |
| Asheville, N.C. | $172,900 | 21.8% | 24% |
| Portland, Ore. | $267,600 | 20.8% | 35% |
| Bellingham, Wash. | $280,200 | 20.0% | 43% |
| Corvallis, Ore. | $266,400 | 18.9% | 14% |
| Salem, Ore. | $201,000 | 18.2% | 25% |
read article here http://money.cnn.com/2010/01/27/real_estate/most_overvalued_metro_areas/index.htm
Check out the list for 2006: http://moneycentral.msn.com/content/Banking/Homebuyingguide/P138237.asp
It appears that this was a very accurate analysis. Many of the cities that were overvalued in 2006 have since seen pricing massively deteriorate.
Now let see if Las Vegas can get back to Even . My thinking is it will be a very long time.
