Caroline Ashe Your Source in Augusta, GA Real Estate February 4th, 2008
In a survey of 100 real estate markets, localmarketmonitor.com (a real estate research firm) rated Augusta Ga has one of 13 ‘undervalued markets’ when comparing historical real estate values to the equilibrium or ‘expected’ home value.
They compared Augusta GA’s average home selling price of $173,400 to the expected value of $204,700- yielding a result that is approximately 15% under the expected average valuation. What follows are the cities on their ‘undervalued’ list:
- Wichita, KS -23%
- Fayetteville, NC -20%
- McAllen-Edinburg, TX -20%
- Memphis, TN -19%
- Indianapolis, IN -19%
- Pittsburgh, PA -18%
- Little Rock, AR -17%
- Dallas-Fort Worth, TX -17%
- Cincinnati, OH -16%
- Des Moines, IA -16%
- Columbus, OH -16%
- Augusta, GA -15%
- Houston, TX -15%
The situation here in Augusta continues to fuel a marketplace that is friendly to buyers, while providing a further indication of the lack of a ‘bubble’ in the area. Home values just weren’t driven very high by cheap mortgages and investor speculation, promising a smooth recovery for the local housing market over the next year to two years. Even better – if the data holds up – home owners should see a significant rise in their home’s value as the market recovery continues.
The survey found that 47 of the 100 markets studied were ‘overvalued’, and 40 were ‘fairly priced’. If you are curious about those overvalued markets, here are the top 10 most overvalued markets according to their research:
- Naples, FL 90%
- Riverside-San Bernardino, CA 75%
- Modesto, CA 74%
- Miami-West Palm Beach, FL 69%
- Stockton, CA 69%
- Santa Barbara-Santa Maria, CA 68%
- Port St. Lucie-Fort Pierce, FL 67%
- San Jose, CA 65%
- Los Angeles-Anaheim, CA 63%
- San Diego, CA 60%
The average home in Naples Florida sells for $521,900 when the expected equilibrium price should be around $274,900. I can only imagine the correction that has to take place in some of those markets before recovery. Wow.
If you would like to see a historical record of average home prices in Augusta, I’ve included one here (click for larger version):
UPDATE: As if to put an exclamation point on my post, Mark Thompson, PhD and a Chair in Business at ASU, also wrote a piece today in the Augusta Chronicle today titled Area’s housing market can wait out US decline (registration required).