REJ: Over and Under priced Single Family House Markets

Want to buy an overpriced home? Try Chico, CA which is estimated at 43% over what they are supposed to be. Want a bargain? Salt Lake City, Utah where homes are -23% of what they should be so says The Wall Street Journals Real Estate Journal: …There is no sign of a national “bubble” in home prices, says Richard DeKaser, chief economist at National City, but “there is a growing risk of ‘bubblettes’ in certain places.” Mr. DeKaser studied data for the past 25 years on 99 metropolitan areas to determine price levels that would be expected for each city based on such factors as population density, incomes, interest rates and past premiums or discounts compared with other parts of the country. He then looked at the difference between those expected levels and actual house prices in 2004…’

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