Tell Us Something We Don't Know

Homes in Sacramento are 59 percent overpriced, according to a recent analysis.

Sacramento trailed only six cities -- five of which are in California -- in a study of 100 housing markets by Local Market Monitor, which compared selling price to "equilibrium values." The equilibrium value was compiled based on such factors as economic and population growth, vacancy rates and construction costs.

The report found the median price of a home in Sacramento to be $366,900, compared to an equilibrium price of $230,900, a 59 percent difference in price. An overpriced market has a median home price more than 15 percent higher than the equilibrium price, according to the report published by CNN Money. The report did not specify if Sacramento included nearby cities.

The overall number of overprice markets fell in first-quarter 2006, compared to the same three-month period last year, dropping from 40 to 38. Of the 100 markets analyzed, 56 are fairly priced.

OK, I think we have all come to the reality that half our equity is going to be lost.
That's great how about an article on the emotional turmoil people will be going through that do decide to keep there house. Would you want to pay a four thousand a month payment on a house that is not worth more than a $1,700.00 a month payment for
the same qualified buyer. How about the hit on the interest rate people took to get a jumbo size loan when they have no need for that.
Think that mentality will effect the housing market?

-Christopher Rockey