St. George still over-priced

http://realestate.yahoo.com/promo/mo...VkLW1hcmtldHM-

Low prices bring investors back into many markets.

NEW YORK (CNNMoney.com) -- Home price declines have sent affordability soaring. Prices have fallen so far that the average U.S. home is now undervalued by 12.2%, according to a new report from IHS Global Insight.


"The good news is that the declines are happening as consumer confidence is rising and housing sales and [building] starts seem to be bottoming out," said Jeannine Cataldi, senior economist for IHS in a statement accompanying the study.

"The bad news is that job losses continue at high rates, housing inventories are still elevated and consumers, while becoming somewhat more confident, are still wary in the face of economic uncertainty."

Prices still falling
The IHS study, House Prices in America, reported that, of the 330 markets it tracked, homes are under-priced in 248. That contrasts sharply with four years ago when only 108 markets were undervalued. (Find your home's value and see comaparable valuations.)

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Not that I'm disagreeing, but how do they arrive at these values? I think that the ones that have dropped through the floor like Vegas shows they were overvalued, and when stress hits the market, prices fall. Now if Prices in STG are staying high and not falling even in a recession as much as others.... Doesn't that mean that they are a good value and people are still willing to pay decent money for a long term investment? I'm slightly confused on this.

Just because the price used to be 400k and now it's 200k doesn't mean its a good deal right? Unless they are selling like hotcakes at that price I wouldn't suspect the price to go back up anytime soon and be a good investment. I think the true inicator should be the volume houses are moving at the price and available total number. Once all the foreclosures and available cheap homes hit's critical mass is where you make a profit.

I just have this secret fantasy that DiscGo and I will someday be neighbors so this is really bad news to hear today.