Orange County Homes Undervalued at Sold Prices During 4th Quarter 2010

Economists at IHS Global Insight and PNC Financial have said that Orange County, CA, homes were priced 5.6% too low in 2009’s fourth quarter.

Comparing local house-sale prices to historical real estate and economic trends, IHS-PNC estimates that Orange County homes were undervalued for the 7th consecutive quarter after being overvalued for the previous 20 quarters.

The latest 5.6% undervaluation — on par with the likes of Louisville, Ky.; Jefferson City, Mo.; Fairbanks and Abeline, Texas — was a roughly equal to the previous 5.5% in Q3. The current wave of Orange County undervaluation peaked at 11.4% in Q4 of 2008.

Also said at IHS report …

• For historical memory sake, Orange County overvaluation peaked at 33% in 2006’s Q2.
• Atlantic City, N.J., was the most overvalued nationally (33% too high) in Q4 2009.
• One reason the undervaluation is shrinking locally is the rising price of homes sold. By IHS-PNC math, O.C. home pricing was up 6.4% in a year as 2009 ended — 3rd biggest gain among the 330 regions tracked nationwide.
• The D.C. region had the largest Q4 price gain (+10.5%) while Las Vegas had the biggest loss (-19.4%).
• The report concludes: “Two years of relentless house price depreciation finally ended in the summer of 2009. The second half of 2009 saw minimal changes in home prices, signaling stabilization at long last, if not yet recovery. … We ended 2009 with no extremely overvalued metros, a sharp contrast to 2005 when 52 metro areas were judged to be extremely overvalued.”

See original Jon Lansner and Jeff Collins article, Orange County Register, March 22, 2010 - click here.

 

________________

Harrison K. Long, Realtor & broker, Explore Group, Coldwell Banker Previews, Irvine, CA.  CA DRE #01410855.  ExploreProperties@gmail.com.  Lawyer - California State Bar Association member #69137.  National Association of Realtors, California Association of Realtors, and Orange County Association of Realtors.  Current Chairperson of Local Government Relations south committee at OCAR.org.  Newport Beach and Irvine area Realtor, broker agent and property information source. 

I'm not surprised.  The Orange County housing market was probably undervalued during 4th quarter last year.  We have seen buyers at Irvine recognizing sign of good opportunity, and they have been aggressive with offers since Super bowl Sunday, clearing well priced homes from the market in a very short time.

Posted via email from Explore OC Homes