California

Study: ‘Overvalued’ Markets on the Decline 

The incidence of overvaluation in the nation’s housing market continues to decline, the result of falling home prices, according to a new report released today by Global Insight. The 2006 fourth quarter update of the U.S. Housing Valuation Analysis, a joint effort between Global Insight and National City Corporation, found that the overall number of single family housing units deemed to be overvalued eased down from 17 percent to 16 percent of the total number of single family housing units. In terms of single family asset value, the percent deemed to be over-valued fell to 28 percent from 31 (revised) percent in the prior quarter.