Courtesy of a lender friend of mine, Jim Hood, I received this article from CNNMoney.com about various housing markets around the country. Local Market Monitor evaluated 100 real estate markets across the country and finds that 56 markets are fairly priced.
Their estimation of fairly priced is a comparison of the median housing value and the area’s equilibrium. They base the equilibrium value on “local economic and population growth, construction costs, vacancy rates, household income in the area and interest rates.”
As you will see, Ann Arbor, Detroit and Grand Rapids all fall in their definition of Fair Value.
While folks in the market for the first time in SE Michigan may not agree, that is an encouraging piece of information. It means that compared to our regional economic indicators, we are not overvaluing our property too much.
Technorati Tags: Michigan Real Estate, Property Values, Market Value
