Trulia: Fairfield County among most ‘undervalued’ markets in the nation

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Shippan Point in Stamford, Conn.

Shippan Point in Stamford, Conn.

The real estate website Trulia issued a report Tuesday estimating that home prices are undervalued by about 5 percent around the nation in the first quarter of 2014. That’s better than it was the previous quarter, when Trulia reported homes were 6 percent undervalued, or a year ago in the first quarter of 2013, when it looked as though the national values were 10 percent down from where they should be.

Trulia’s Chief Economist Jed Kolko writes that bubble watching “reveals whether home prices are overvalued or undervalued relative to their fundamental value by comparing prices today with historical prices, incomes, and rents. The more prices are overvalued relative to fundamentals, the closer we are to a housing bubble – and the bigger the risk of a future price crash.” 

In that case, it seems Connecticut has nothing to worry about at this time. Three of the states metros made Trulia’s “Top 10 metros where home prices are most undervalued.” Check out how we stack up:

Of course, there are several places where home prices are now overvalued, and six of the top 10 are located in California, according to Trulia, which sets Orange County at the top of the list with a home price 16 percent over its value. Check out the post for the full ranking.

Categories: General
Maggie Gordon

7 Responses

  1. Chimp says:

    Undervalued? So they should be costing more than they do already? Riiighhht….

    That makes sense.

  2. Lori says:

    Wow, now that’s irresponsible reporting! If homes were undervalued then sales would be brisk and prices rising! Value is determined by what buyers are willing to pay not the inflated prices of a few years past, nor the low prices of decades ago. As a real estate agent, I can assure you that we compare recent sales of similar homes in the same market area to determine what buyers are willing to pay. Plus, we look to see if there has been any consistent increases or decreases lately then calculate that into the recommended sales price. We NEVER price a house based on historical figures from a different market.

  3. Pearl says:

    Undervalued? That’s an understatement in my experience. Every week I check the websites with sales on offer in my community, there are homes added to the listings that are being offered at much, much less than when purchased — the sales history of some of these homes shows numerous price cuts and still no sale over many months or even years, and some of the photos show the homes to be vacant so the owners appear to have moved on. I find that Zillow prices are too high. When selling our home, the only solid offers were hundreds of thousands lower than the appraisal — BELOW prices in the late 90′s. Property taxes are way out of whack. ON CNBC yesterday, they showcased two homes for sale — one in Lexington, KY, one in Ellington, CT. They were both about the same price and similar details — the one in CT had taxes of $18,000 — the one in Lexington? $6,000. The realtor hosting the segment even commented on those high taxes. Look at the foreclosure numbers in your area — you night be surprised. They are only the homes that have been served notice by the bank, not homeowners ‘just a few payments behind.’ I also know families still fighting their lenders for re-fi’s and facing foreclosure, and their homes are not even on the ‘distressed properties’ list.

  4. David Cooper says:

    Do any of these sites account for factors such as property taxes or how much down payment is needed?

  5. Dave says:

    I wouldn’t rely on what Trulia say’s. My house fluctuates $20-30,000 on their site every few weeks. I just had an appraisal for a refi and it was $38K less than what Trulia stated, yet spot on what Zillow.com said it was worth.

  6. Marlene says:

    This coming from a site that has my house valued at what I paid for it in 1988, while another joke of a site (Zillow) has it valued for $40k more, and my real estate agent appraised it for $60k more. Never trust these sites that base value on region, location, etc. Go with a real estate broker that actually comes to the house and analyzes everything.

  7. FEDUP says:

    That’s because there’s a surplus due to the fact that the smart residents are moving the hell out of CT