Industry News

Study notes decline in overvalued real estate markets

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Fourth-quarter home prices declined in 23 percent of metro areas included in a study released today, while the total number of overvalued housing units dropped. The "House Prices in America" study revealed that 72 of 317 metro areas studied experienced price declines in the fourth quarter, up from 65 metro areas with price declines in third-quarter 2006. The study was prepared by economic information company Global Insight and financial holding company National City Corp. Metro areas studied in the report account for 77 percent of existing single-family housing units and 86 percent of related real estate value. The study is based on a historical evaluation of house prices, interest rates, household income, and population densities, among other data. In California, 21 of 26 metro areas included in the study had negative appreciation rates in the fourth quarter. Ten of 18 reported metro areas in Florida had price declines, and a total of 29 states were home to one or more metro areas tha...