Some would argue that the housing “crises” started in conjunction with the bank collapses last September.  Buyers got wary and held off on purchases, listings sat on the market for lenghts of time not seen in years and got stale.  The banks that didn’t fold were afraid to lend money and the Federal Reserve was siezing financial instutions that were teetering!  Yikes, it got messy for a moment.  There are solid arguments being presented on both sides of the “have we hit bottom yet?” conundrum, but it’s clear that some markets are looking more attractive than others to home buyers and investors.  Yahoo Real Estate recently reported that:

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.

Atlantic City, New Jersey was ranked as the number one most overvalued city in the nation as it has listings like these on the market.  We’ll take a closer look at the most undervaled city as ranked by IHS Global Insight Vero Beach, Florida in our next post. 

Most Overvalued and Undervalued Housing Markets [ Yahoo Real Estate]
Most over- and under-valued housing markets [CNN Money]