Report: Home prices to fall below fundamentals

Bend, Atlantic City, St. George rank as 'extremely overvalued'

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A new report suggests that homes are no longer overpriced in the vast majority of markets, but concludes prices will continue to fall in areas hard hit by foreclosures — in many cases overshooting market fundamentals on their way down.

IHS Global Insight’s quarterly report, House Prices in America, looks at historical home-price-to-income ratios in 330 metro areas. The latest report concludes that homes were fairly valued in all but 33 of those markets at the end of September.