With all of the Foreclosures and Short Sales going on the question now is are today's homes undervalued? I Just read a great article on this subject in the Realtor's magazine and there research is interesting.
Lawrence Yun Chief economist of the National Association of Realtors states:
"The median national home price today is about $169,000, down almost 14 percent from a year ago and an estimated 30 percent from its peak. It's safe to say we've reached the point where prices are justified by the fundamentals of the economy and may even represent an undervaluation."
This undervalued properties is creating a problem for homeowners that have great credit good income from being able to qualify for a great refinance package. Mainly because the image that is being created is showing that there homes may be underwater regarding value. Now this will more than likely settle down but it might be the new norm for awhile.
Here is some more from Lawrence Yun Chief economist of the National Association of Realtors:
"What's clear is that the challenge today is getting credit moving again for everyone. Until then, markets will continue to be distorted by the disproportionate number of short-sale and foreclosed homes for sale."
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1 comment:
We could only hope for the better in the days and months to come. Thanks for a great post here. Hey, I know a great Kentucky home that might interest you too. Thanks.
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