What??! Boston Area Real Estate “fairly valued”??
November 21st, 2007
SmartMoney Magazine reports in the December 2007 issue that Massachusetts real estate is considered “fairly valued”.
They compared local housing prices with other factors, including household income, population density, and interest rates.
Generally, when home prices and incomes grow in tandem in a particular metro area, that market is probably fairly valued; when home prices rise much faster, the market becomes overvalued and a real estate slump is a real danger.
Link to Smartmoney Stats: http://www.smartmoney.com/mag/download/december2007housing.xls
Link to SmartMoney Magazine Article:
http://www.smartmoney.com/mag/index.cfm?story=december2007-housing
Here are the stats that the article reports:
Worcester MA Median Price of $244,300;
10% overvalued; -3% home price chg 06-07
Springfield MA Median Price of $214,100;
10% overvalued; 1% home price chg 06-07
Essex County MA Median Price of $333,800;
6% overvalued; -3% home price chg 06-07
Boston-Quincy Median Price of $345,100;
2% undervalued; -3% home price chg 06-07
Cambridge-Framingham MP of $$379,500;
5% undervalued; -2% home price chg 06-07
All of these areas fall within the study’s classification of “fairly valued”. For all you people who are wondering where NOT to go buy a home because it is “extremely overvalued”, stay away from Miami, California, and Honolulu. They recommend the “undervalued” markets of Dallas, Rochester NY, and Tulsa.
Categories: Ashland, Framingham, Holliston, Hopkinton, Milford, Natick, Real Estate
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