Most U.S. Housing Markets Are Undervalued
June 8th, 2010
- Appraising Your Home for a Reverse Mortgage
- Keep an Eye on Home Values in Your Neighborhood
- More Metro Areas Saw Home Prices Rise in First Quarter
- U.S. home prices rise slightly, but will gains continue?
- Fannie Mae Backs Away From “Declining” Markets
Who can forget some of the bidding wars that took place when the housing market was booming. Many home buyers found themselves paying a lot more than they planned, inflating home prices. Property values have tumbled over the past few years, however, resulting in many housing markets becoming undervalued, according to a recent report from IHS Global Insight and PNC Financial Services.
Most Undervalued Markets
Only 87 housing markets are considered overvalued now, with Atlantic City at the top of the list. The next most overvalued housing markets are Wenachee, Wash., and Ocean City, N.J. Las Vegas is the most undervalued market in the list, with homes selling for 41.4% below fair market value. Other housing markets that are undervalued include Vero Beach, Fla., Merced, Calif., and Cape Coral, Fla.
Reverse Mortgage Appraisals
Lower property values could mean that you might not be able to borrow as large with a reverse mortgage as you hope to. The amount you receive with a reverse home mortgage depends upon the property appraisal, as well as your age and current mortgage rates. The higher your home appraisal and the older you are, the money you get.
Take steps to ensure that you get the best property appraisal possible if you plan to apply for a reverse loan. Research your housing market to see what homes in your area are selling for. A real estate agent can help you put together a comparative analysis of homes in your area. Once you apply for a loan the reverse mortgage lender will order a full appraisal.
Discuss any concerns you have about property values in your area with a reverse mortgage counselor. That person can help you run all the numbers to determine how much you can expect to borrow.